Copper futures saw a decline of nearly 2%, dropping to below $4.80 per pound on Friday. This downturn erased gains made earlier in the week, primarily due to the strengthening of the US dollar, which dampened demand for commodities priced in dollars. The rise in the dollar’s value came amid positive developments in global trade relations. US President Donald Trump indicated ongoing negotiations with China, alongside progress in talks with Japan and South Korea. Additionally, reports suggest that China is contemplating the removal of its 125% tariff on certain US goods, fostering optimism for a further mitigation of the trade conflict. Although such trade optimism buoyed the broader market, it negatively impacted copper prices by making the metal pricier for international buyers due to the stronger dollar. Despite the boost in market sentiment, uncertainty lingers, with speculation that copper might be targeted in future trade measures, thus introducing volatility to the market. Traders, anticipating potential supply risks, have contributed to recent price increases as they adjust their positions accordingly.
The material has been provided by InstaForex Company – www.instaforex.com
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