Copper futures rebounded above $5.80 per pound on Friday alongside a broader recovery in industrial metals, but remained on track to end the week lower as investors sought safety in the US dollar amid mounting geopolitical and inflation risks. The US–Israeli offensive against Iran has entered its seventh day with no sign of de-escalation, while Tehran has launched a new wave of missile and drone attacks across the Gulf.
Market participants also faced sharply higher oil prices, stoking fears of a renewed surge in global inflation, reinforcing expectations that the Federal Reserve will postpone interest rate cuts and bolstering the dollar at the expense of risk assets. In China, the world’s largest copper consumer, authorities this week set a more modest economic growth target of 4.5%–5.0%, underscoring persistent deflationary pressures and the drag from elevated US tariffs.
