Copper futures rose above $4.80 per pound on Wednesday, rebounding from the previous session’s losses as investors positioned ahead of the US Federal Reserve’s policy announcement. While the Fed is widely expected to keep rates unchanged, market focus remains on its forward guidance amid ongoing tariff uncertainties and geopolitical risks. Expectations for additional Fed rate cuts this year have been tempered due to persistent trade tensions and renewed inflation concerns, particularly with oil prices trending higher.
On the geopolitical front, President Donald Trump escalated tensions with Iran, demanding its “unconditional surrender” and threatening a strike against Supreme Leader Khamenei. Meanwhile, a Westpac economist suggested that tight copper market conditions may ease in the near term, hinting at the possibility of a price correction. Analysts also warned that any formal announcement of US tariffs on copper could trigger a “sell-the-news” reaction in the market.
