FX.co ★ Copper Trades Sideways Amid Tariff Uncertainty

Copper futures fell slightly to approximately $4.82 per pound on Thursday, maintaining a narrow trading range observed over the past fortnight as the markets weighed tightening supply against the potential for a price correction. This year, available inventories have declined by 80%, partly due to a surge in U.S. imports in anticipation of expected tariffs. However, analysts warn that once the specifics of the tariffs are announced, this preemptive import strategy could reverse, leading to a prolonged period of inventory reduction in the U.S. Additionally, market sentiment remained cautious amid heightened geopolitical tensions, particularly with the escalating Israel-Iran conflict and reports of possible U.S. plans for a strike on Iran. Meanwhile, the Federal Reserve left interest rates unchanged and projected a wary outlook, noting that President Trump's tariffs could potentially fuel inflation and complicate future monetary policy decisions.