FX.co ★ Copper Extends Losses to 10-Week Low

Copper futures have declined, approaching the $4.20 per pound mark. This extends last week's 14.1% decrease, marking the lowest value in ten weeks, as fears of an escalating trade war initiated by President Trump fuel concerns of a potential global recession. Despite efforts by Trump officials to stabilize the markets, economists continue to caution about decelerating growth and increasing inflation. In recent developments, President Trump has threatened to impose a 50% tariff on China unless it rolls back a retaliatory 34% duty on US goods. Additionally, the White House has dismissed speculation about a possible 90-day pause on tariffs, contributing to market volatility. Nevertheless, the new US tariffs notably exclude copper, gold, energy, and certain minerals that are not sourced domestically. Copper prices had previously soared to record levels in late March amid speculation that Trump might specifically target the metal, although these fears have not yet been realized, leading to the current pullback in prices.