FX.co ★ Copper Climbs Higher on Risk-On Sentiment

Copper futures surged past $4.40 per pound on Thursday, extending gains initiated in the previous session as investor sentiment improved following a shift in U.S. trade policy. This upward trend was triggered by President Donald Trump's decision to adjust his reciprocal tariff plan, reducing tariffs on imports from most U.S. trade allies to 10% for a 90-day negotiation period. This development alleviated concerns regarding trade barriers that posed a threat to global economic growth and manufacturing demand. Copper, widely regarded as a critical indicator of economic health, had recently faced downward pressure due to fears that intensifying trade tensions might tilt the global economy toward recession. While this policy change provided some relief, uncertainty persists as China, the largest consumer of copper, continues to face a hefty 125% tariff amid ongoing retaliatory measures between Washington and Beijing. Additionally, it remains uncertain whether U.S. tariffs will directly impact copper or related products.