Copper Rises as Fed Signals Loom

Copper futures fell to around $5.78 per pound on Thursday, trimming gains from the previous session as the dollar strengthened on robust US economic data and hawkish signals from the Federal Reserve. Minutes from the Fed’s January meeting revealed a split among policymakers, with some signaling that rate cuts would be appropriate if disinflation continues, while others favored keeping rates steady longer and even flagged the possibility of further tightening if inflation remains persistent. Traders slightly pared expectations for Fed rate cuts this year but still anticipate two 25 basis point reductions before year-end. Copper was further pressured by rising exchange inventories and soft demand amid muted economic activity in top consumer China during the week-long Lunar New Year holiday.

Copper futures climbed to around $5.70 per pound on Wednesday, recouping losses from the previous session and tracking a broader rebound in the metals market. Those moves came even as the dollar strengthened ahead of the latest Federal Reserve policy meeting minutes and a key US inflation report this week, although trading volumes remained subdued as several Asian markets were closed for the Lunar New Year holiday. However, gains were slightly tempered by rising copper inventories in exchange-monitored warehouses, which climbed to their highest level in roughly 11 months, reinforcing concerns about near-term oversupply. Analysts cautioned that it may take time for stockpiles to be drawn down, particularly during seasonal holiday periods when physical demand typically slows. On the supply side, Chilean miner Antofagasta reported a sharp increase in annual core earnings, supported by last year’s record copper prices.

Copper decreased to 5.68 USD/Lbs, the lowest since January 2026. Over the past 4 weeks, Copper lost 3.53%, and in the last 12 months, it increased 24.38%.