FX.co ★ Copper Set for Third Weekly Gain

Copper futures hovered around $5.75 per pound on Friday and were set for a third straight weekly gain, supported by optimism that the US–Iran ceasefire will hold and ultimately allow for the reopening of the Strait of Hormuz. A resumption of traffic through the key shipping corridor is expected to ease investor fears over inflation and weakening global industrial activity, both of which have weighed on metals demand.

Market attention is now on diplomatic talks in Islamabad this weekend, where Vice President JD Vance will lead a US delegation in meetings with Iranian officials. Still, sentiment remains fragile amid ongoing Israeli strikes in Lebanon and persistent disruptions in the Strait of Hormuz that could threaten the peace process.

At the same time, rising copper inventories are capping gains, with stockpiles in LME warehouses climbing to an eight-year high, underscoring still-muted demand conditions.