Copper futures hovered around $4.04 per pound on Friday but were poised to decline by over 2% for the week, as a hawkish outlook from the Federal Reserve and demand concerns in China pressured prices.
Copper stabilizes, set for weekly decline
Earlier in the week, the Fed implemented a widely expected quarter-point rate cut but signaled fewer reductions in 2025 due to persistent inflation risks. Robust US economic data, including strong weekly jobless claims and an upward revision to third-quarter GDP, further supported expectations of elevated interest rates.
China weighs on copper prices
In China, economic uncertainties and the lack of specific policy measures fueled concerns over future demand. Adding to the cautious market sentiment, the prospect of higher US tariffs under the incoming Trump administration heightened uncertainty in the outlook.
