Copper futures held above $6.10 per pound on Tuesday but remained on course for a monthly loss of more than 4%, weighed down by expectations of tighter US Federal Reserve policy that have dimmed the demand outlook for industrial metals. Markets are still pricing in three Fed interest rate hikes this year, with the first potentially coming in September. Investors are now awaiting this week’s US monthly jobs report for fresh signals on labor market conditions and the central bank’s policy path.
At the same time, Goldman Sachs noted that the conflict involving Iran could ultimately bolster metals demand, citing several structural drivers for long-term copper consumption: faster adoption of electric vehicles, greater investment in renewable energy, higher defense spending, and intensifying competition in artificial intelligence.
