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.
Source: Trading Economics
