FX.co ★ Copper Rises as Dollar Weakens

Copper futures experienced an upward movement, surpassing $5.8 per pound on Friday. This rebound from recent lows in the markets correlates with widespread gains in the metals sector, largely due to the weakening of the US dollar. The shift in US-Europe geopolitical dynamics concerning Greenland has created additional demand for real assets and put pressure on the dollar. This is compounded by apprehensions that Europe could potentially leverage its significant US asset holdings. In terms of supply, prices remained buoyed by risks as a significant copper mine in Chile ceased production due to a strike. This development is expected to counterbalance Freeport McMoRan’s advances in resuming operations at Indonesia’s Grasberg mine. On the demand front, steady consumption is fueled by the global shift towards renewable energy, coupled with a spike in shipments to the US in anticipation of possible tariffs. In China, smelters have increased their export activities by supplying LME warehouses, driven by higher global prices and ongoing challenges within China's property market.