Copper Prices: The Tug of War Between Ceasefire Hopes and Dollar Strength
Copper prices slightly declined as investors await a U.S-Iran ceasefire deal while the dollar strengthens. LME copper dropped 0.1% following a previous gain of 1.3%. Market optimism stems from potential end to Iran war, although official approval remains pending. Copper demand and U.S. market activities also influence trends.
Copper prices saw a slight decline on Friday as the market awaited further developments regarding a potential U.S.-Iran ceasefire deal. The stronger dollar also played a role in driving the price down. On the London Metal Exchange, three-month copper edged lower by 0.1%, priced at $13,690 per metric ton by 0910 GMT, following a 1.3% gain in the previous session.
The earlier session saw a rebound after news surfaced that the U.S. and Iran had reached an agreement to extend the ceasefire, potentially lifting restrictions on shipping through the Strait of Hormuz. However, the deal awaits final approval from President Donald Trump, and Iranian state media indicated the agreement was not yet finalized.
Commodity strategist Ole Hansen from Saxo Bank noted that profit-taking contributed to the downturn in copper prices, following a two-week uptrend. The sector still sees a potential 5.3% monthly gain due to hopes of an end to the Iran conflict and signals of increasing demand.
(With inputs from agencies.)
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