FX.co ★ Copper Falls on Risk-Off Sentiment

Copper futures fell by approximately 1% to below $4.80 per pound on Friday, poised to end the week on a lower note. This downturn was driven by increased geopolitical tensions and growing economic uncertainty, which sparked a widespread risk-averse stance in global markets. The decline was precipitated by Israel’s preemptive strike on Iran, aimed at its nuclear facilities, which was swiftly met with retaliatory drone attacks from Tehran. This rapid escalation heightened fears of a prolonged conflict in the Middle East, significantly dampening investor sentiment. Compounding the negative outlook, US President Donald Trump reiterated threats of imposing unilateral tariffs on trade partners, further obscuring the global demand outlook. Additionally, concerns about diminishing demand from China, the largest consumer, continued to rise, as domestic smelters increasingly turned to export markets, highlighting oversupply and weak local consumption.