FX.co ★ Copper Retreats Amid Year-End Profit-Taking

Copper futures dipped over 1% to approximately $5.7 per pound during the year's final trading session, as investors engaged in year-end profit-taking after a notable rally. Despite this decline, copper is poised to achieve its largest annual increase since 2009, establishing itself as the top-performing base metal. The metal's performance has been bolstered by supply constraints and strong demand linked to the energy transition and the growth of infrastructure for artificial intelligence and data centers. On the London Metal Exchange, the benchmark three-month copper slightly declined to $12,538 per metric ton but is on course to conclude the year with a gain exceeding 43%. Additional support for this rally came from mining disruptions, notably the temporary closure of Freeport’s Grasberg mine in Indonesia, helping copper surpass several key price milestones throughout the year.