FX.co ★ Copper Muted as Traders Await Fed Decision

Copper futures remained steady at approximately $4.81 per pound on Tuesday as traders cautiously awaited the US Federal Reserve's decision on interest rates. The consensus is that the Fed will maintain current rates, but investors are keenly watching for any forward guidance that could influence market expectations through the rest of the year. Concerns over trade tensions and resurgent inflation worries, particularly due to increasing oil prices, have tempered investor sentiment. Consequently, expectations for further Fed rate cuts have been reduced. On the geopolitical stage, heightened caution was further fueled by President Donald Trump's call for a complete evacuation of Tehran amid ongoing Israeli airstrikes, prompting him to leave the G7 summit in Canada early to oversee the situation. Meanwhile, an economist from Westpac noted that the tight conditions in the copper market might ease shortly, which could lead to a price correction, even if new US tariffs on copper are imposed.