FX.co ★ Copper Falls on Risk-Off Sentiment

On Tuesday, copper futures fell below $5.3 per pound, pulling back from recent four-month highs. This decline was part of a broader risk aversion trend affecting financial markets, causing downturns in commodities, equities, and cryptocurrencies. Market participants were also cautiously anticipating the delayed US jobs report, which could potentially shape the Federal Reserve’s policy decisions for the coming year. Meanwhile, investor sentiment was dampened by sluggish economic activity and the absence of robust policy support in China, the world's largest copper consumer. Despite this, copper prices found some backing due to ongoing supply disruptions at key global mines, along with the prospect of the Trump administration imposing tariffs on refined metals. Such a move is likely to compel traders to redirect copper shipments to the US, subsequently tightening supply conditions in other regions.