FX.co ★ Copper Inches Lower From Peaks

Copper futures in the United States experienced a reduction in gains, trading at $5 per pound on Friday, after hitting record highs of over $5.1 earlier in the day. This decrease came as the dollar strengthened and markets evaluated the potential risks that disruptive economic policies might pose to manufacturing activities. Nevertheless, prices stayed high due to pressures on domestic smelters, exacerbated by the looming threat of sanctions from President Trump. This has driven the premium on CME futures to $0.55 per pound, one of the highest levels recorded. President Trump signed an executive order to begin a review of copper imports, following a previous statement indicating he would impose tariffs on the metal. Such actions would increase reliance on domestic production capabilities, which are limited to only two significant smelters, as the United States imports nearly half of its copper needs. Meanwhile, demand from leading consumer China remained robust, bolstered by a surge in manufacturing activity and the government's commitments to increase deficit spending.