FX.co ★ Copper Extends Gains on Risk Rally

Copper futures soared past $5.9 per pound on Thursday, setting a new record high as global risk sentiment improved with advancements in US trade discussions with key partners. Investor optimism was bolstered by reports of the United States and the European Union closing in on a trade agreement imposing a 15% tariff on European exports, akin to the pact made with Japan earlier this week. US Treasury Secretary Scott Bessent announced that American officials are scheduled to meet with Chinese representatives in Stockholm next week, expressing confidence that the existing tariff truce will be renewed beyond its August 12 deadline. Concurrently, market participants are evaluating the ramifications of the US's impending 50% tariff on copper imports, which will include refined copper. This measure is intended to boost domestic production but has sparked concerns about supply stability, given that the US imports nearly half of its copper consumption.