FX.co ★ Copper Falls on Profit-Taking

Copper futures slipped to around $6.55 per pound on Tuesday, a two-week low, as investors took profits following the metal’s record-breaking rally earlier this month. The broader metals complex also came under pressure from rising oil prices, which kept inflation risks and the outlook for interest rates in sharp focus. Sentiment was further weighed down by fading prospects for a new agreement between the US and Iran, after President Donald Trump indicated he was not interested in extending the interim peace deal. Even so, signs of tightening global copper supply continued to underpin prices, with the metal still flowing to the US and China while becoming increasingly scarce in other regions. Adding to concerns, top producer Chile expects its copper output to decline by 2.6% this year amid ongoing disruptions at mines and delays in key development projects.