FX.co ★ Copper Soars 8% after Historic Selloff

Copper futures in the US experienced a notable increase of 8.5%, reaching $4.4 per pound on Wednesday. This rise came after the metal touched a three-month low of $4.05 earlier in the trading session. The bounce-back can be attributed to US President Trump's decision to temporarily pause his planned reciprocal tariffs for a period of 90 days. While copper had initially been excluded from these tariffs, the suspension has sparked optimism that during this period, countries might negotiate deals with the US to dismantle more severe trade barriers that could hamper global economic growth and manufacturing demands. Nevertheless, copper futures are still approximately 20% below their all-time high of $5.3, which was recorded on March 26th. This decline is primarily due to the US's ongoing intention to impose tariffs specifically on copper in the coming weeks. Such potential tariffs have led to an increased premium for US copper futures compared to similar contracts on the London Metal Exchange, given the strain that these trade barriers could place on America's limited copper smelting capacity.