Copper Declines Amid Risk-Off Mood
2026-05-19 04:14
By
Jam Kaimo Samonte
1 min. read
Copper futures fell to around $6.2 per pound on Tuesday, reaching their lowest levels in nearly two weeks as a broader selloff in equities fueled risk-averse sentiment amid escalating uncertainty in the Middle East.
Markets reacted cautiously to President Donald Trump’s comments suggesting possible progress toward a peace agreement with Iran, with investors remaining skeptical that a resolution to the conflict was near.
Elevated oil prices and accelerating inflation also strengthened expectations for further central bank interest rate hikes.
Higher borrowing costs are seen weighing on global economic growth and manufacturing activity, adding pressure to the outlook for industrial metals demand.
Sentiment was further hurt by fresh signs of weakness in China’s economy, as retail sales and industrial production both fell short of expectations, while fixed asset investment unexpectedly contracted, deepening concerns over demand prospects in the world’s largest copper consumer.