FX.co ★ Copper Remains Volatile

Copper rebounded above $5.80 per pound on Friday after a 3% decline in the previous session, as investors continued to navigate heightened volatility across metals and broader financial markets. Thursday’s selloff had no obvious single trigger, but concurrent losses in equities and cryptocurrencies suggest forced liquidations, likely exacerbated by algorithmic trading. Market focus is now shifting to the upcoming US inflation report, which could influence expectations for Federal Reserve policy. On the fundamental side, copper is under near-term pressure from expectations of softer demand in China, the world’s largest consumer, as economic activity slows ahead of the Lunar New Year holidays. Even so, ongoing supply disruptions and solid global demand—supported by the energy transition and the continued build-out of AI-driven data centers—remain key pillars underpinning prices.