Copper is down by 2.05%

Copper decreased 2.05% to 6.1434 USD/Lbs

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.

Copper futures slipped below $6.2 per pound on Monday, marking a third straight session of losses as growing evidence that the Middle East-driven energy price shock is fueling broader inflationary pressures reinforced expectations for tighter central bank policy. In the latest developments, President Donald Trump warned that Tehran is running out of time to reach an agreement with Washington, while Iranian media reports suggested negotiations remain at an impasse. Higher interest rates are seen weighing on the outlook for global economic growth and manufacturing activity, putting additional pressure on industrial metals demand. Sentiment was also dampened by signs of weakness in China’s economy, with retail sales and industrial production both missing expectations, while fixed asset investment unexpectedly contracted, raising concerns about demand prospects in the world’s largest copper consumer.