FX.co ★ Copper Holds Losses on Risk-Off Mood

Copper futures remained close to $4.42 per pound on Wednesday, following a 1% decrease in the previous session. This decline was driven by a widespread selloff in risk assets, particularly affecting US technology stocks. Investor caution intensified ahead of the Federal Reserve’s annual Jackson Hole symposium, as markets awaited potential signals from Chair Jerome Powell regarding whether policymakers might counter expectations for an interest rate cut next month. On the supply front, an increase in imported copper arrivals has bolstered inventories, alleviating concerns about supply tightness. Furthermore, the market currently lacks new macroeconomic catalysts, with abundant stockpiles, relatively easy supply conditions, and only a slight uptick in demand resulting in stagnant prices.