FX.co ★ Copper Rises as Risk Appetite Improves

Copper futures rose back above $5 per pound on Monday, recovering from a recent one-week low due to an improvement in risk sentiment linked to easing trade tensions between the United States and China. President Donald Trump remarked that his intended retaliatory tariffs on Chinese imports would not be viable. In addition, Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled for discussions this week, ahead of a potential meeting between Trump and China's President Xi later in the month. Further strengthening prices are the expectations of interest rate cuts by the Federal Reserve, with the market fully anticipating a 25 basis point reduction this week, followed by another in December, and possibly three more by 2026. At the same time, Chinese smelters are boosting their copper exports due to higher prices on the London market and increased domestic costs impacting local demand.