Copper is down by 2%

Copper decreased 2% to 6.0686 USD/Lbs

Copper futures fell to around $6.1 per pound, giving back recent gains as investors awaited a US Commerce Department report on the copper market that could pave the way for import tariffs on refined copper. The metal also came under pressure from expectations that the US Federal Reserve will raise interest rates as soon as September, weighing on the demand outlook for industrial metals. Additionally, improving commercial traffic in the Strait of Hormuz amid progress in US-Iran peace efforts reduced supply risks for copper. Meanwhile, Goldman Sachs said the conflict involving Iran could ultimately support metals demand, citing stronger electric vehicle adoption, increased investment in renewable energy, higher defense spending and intensifying competition in artificial intelligence as key drivers of long-term copper consumption.

Copper futures steadied above $6.1 per pound on Tuesday but remained on track to fall more than 4% for the month, pressured by expectations of tighter US Federal Reserve policy that has dampened the demand outlook for industrial metals. Markets continue to price in three Fed interest rate hikes this year, with the first potentially arriving in September. Investors are now looking ahead to the US monthly jobs report later this week for fresh insight into labor market conditions and the central bank's policy trajectory. Meanwhile, Goldman Sachs said the conflict involving Iran could ultimately boost metals demand, pointing to stronger adoption of electric vehicles, increased investment in renewable energy, higher defense spending, and intensifying competition in artificial intelligence as key factors supporting long-term copper consumption.