FX.co ★ Copper Climbs on Improved Risk Appetite

Copper futures climbed to over $5.1 per pound, marking the highest point in two weeks, as investor sentiment improved following President Donald Trump's approval of a temporary funding bill ending the longest shutdown in US history. Optimism grew around potential additional interest rate cuts by the Federal Reserve, fueled by indications of labor market weakening, further boosting risk assets. Concurrently, the Trump administration expanded the list of critical minerals essential to the US economy and national security to include copper, highlighting its significance for electric vehicles, power infrastructure, and data centers. At the same time, there was increasing speculation that Beijing might next focus on the copper refining sector in its efforts to curb overcapacity, following advocacy from China’s nonferrous metals association for stricter regulation on new smelting projects.