Copper futures rose to about $6.40 per pound on Friday, rebounding from three-week lows. The move came as growing optimism over a potential US–Iran peace agreement helped ease worries about global growth and, by extension, demand for industrial metals. President Donald Trump said a deal could be signed as early as this weekend in Europe, though there has been no confirmation from Tehran.
At the same time, stronger-than-expected US inflation data reinforced expectations that the Federal Reserve may raise interest rates later this year. The metals demand outlook remains uncertain, as the prospect of tighter monetary policy could dampen economic activity and industrial consumption over time.
Separately, Jefferies projects that copper prices will remain elevated for longer than previously forecast, pointing to an average annual supply deficit of 491,000 tons through 2030 and a slower-than-anticipated production recovery at the Grasberg mine.
