Copper Rally Fades as Trump Tariff Bets Cool; Mining Stocks Waver
Copper prices retreated from near all-time highs as optimism over a US-Iran peace deal and fading tariff bets weighed on the red metal, while mining stocks like BHP and Rio Tinto hover near buy points.
Copper prices retreated from near all-time highs on Tuesday as the earlier rally lost momentum, with market participants reassessing the likelihood of imminent US tariffs on the metal and factoring in hopes for a US-Iran peace deal that could ease geopolitical tensions.
The pullback comes after copper briefly rallied to within 4% of its record peak, driven by expectations that the Trump administration could announce expanded tariffs on copper imports later this month. However, fading tariff bets, combined with a softer dollar and optimism over a potential US-Iran agreement, prompted profit-taking. Mining stocks such as BHP Group, Rio Tinto, Anglo American, and Teck Resources are trading near buy points, while the United States Copper Index Fund, a copper stock ETF, also hovers at key levels. Traders can track these moves on NowPrice's live commodities dashboard for real-time price action.
Looking ahead, markets are bracing for potential tariff announcements later this month, which could reignite volatility in copper prices. Meanwhile, demand for the red metal continues to outpace supply, providing underlying support. Key levels to watch include the all-time high near $5.00 per pound, with a break above that potentially opening the door to further gains. On the downside, a sustained move below recent support could signal a deeper correction.