FX.co ★ Copper Prices Rise on Weaker Dollar

Copper futures surged past $4.65 per pound on Thursday, continuing their upward trend for the week. This rise was primarily driven by a weakening US dollar, which is making commodities priced in dollars more appealing to international buyers. The dollar's decline is largely attributed to increasing concerns regarding the US fiscal outlook, as President Donald Trump's proposed budget is expected to inflate the national debt by over $3 trillion. Adding a positive note for demand, the People's Bank of China—representing the largest consumer of copper globally—recently reduced key lending and liquidity rates to stimulate economic growth and address trade-related challenges. Despite these factors supporting demand, the rise in copper prices faced limitations due to indications of increased supply. Enhanced copper ore production from South America has heightened the possibility of a surplus in 2025, leading traders to reduce their bullish positions in US copper futures. These positions were initially established in anticipation of potential tariffs following Trump’s announcement of an investigation into copper imports.