FX.co ★ Copper Slips After Two-Day Rebound

Copper futures slipped toward $6.10 per pound on Monday, ending a two-session rebound as expectations of tighter US Federal Reserve policy continued to pressure the outlook for industrial metals demand. Fed Chair Kevin Warsh reiterated the central bank’s determination to curb inflation, reinforcing the hawkish message of his debut earlier this month that had already led markets to pare back forecasts for US rate cuts this year. Investors are now looking ahead to this week’s US monthly jobs report for fresh signals on labor market conditions and the Fed’s policy trajectory. At the same time, Goldman Sachs noted that the conflict involving Iran could ultimately bolster metals demand, pointing to greater reliance on electric vehicles, expanded investment in renewable energy, higher defense spending, and intensifying competition in artificial intelligence as key structural drivers of copper consumption.