Copper futures hovered around $4.81 per pound on Tuesday, showing little movement as traders remained cautious ahead of the US Federal Reserve’s interest rate decision. While the Fed is widely expected to hold rates steady, markets are focused on any forward guidance that could shape expectations for the remainder of the year.
Investor sentiment has been tempered by trade-related uncertainties and renewed inflation concerns, particularly amid rising oil prices. Bets on further Fed rate cuts have been scaled back as a result. On the geopolitical front, US President Donald Trump called for the full evacuation of Tehran amid ongoing Israeli airstrikes and left the G7 summit in Canada early to monitor the situation, adding to global market caution. Meanwhile, a Westpac economist noted that tight copper market conditions may ease in the near term, suggesting a potential correction in prices—even in the event of new US tariffs on the metal.
