FX.co ★ Copper Prices Rise on Risk-On Mood

Copper futures experienced an uptick, reaching approximately $4.55 per pound on Monday, building on the gains observed last week. This positive movement followed the decision by US President Donald Trump to exempt crucial technology products from the newly instituted "reciprocal" tariffs, improving investor sentiment. This development alleviated immediate trade concerns and bolstered risk assets on a global scale. The Chinese Commerce Ministry described the exemptions as a "small step" and called for a complete removal of the comprehensive 145% tariff imposed on Chinese goods by the US. At the same time, investors are attentively monitoring the forthcoming trade discussions between the US and key nations, including Japan, India, and South Korea, scheduled for this week. Additionally, copper prices received support from speculation that the US might implement metal-specific tariffs based on national security considerations. This speculation has contributed to the widening of the premium of US copper futures compared to similar contracts on the London Metal Exchange, as potential trade barriers threaten to exacerbate the existing limitations of America's copper smelting capacity.