FX.co ★ Copper Rises on Weaker Dollar

On Wednesday, copper prices rose above $5.8 per pound, rebounding from the previous session's downturn due to a weakened dollar amidst renewed geopolitical and trade tensions. The depreciation of the dollar enhances the appeal of dollar-denominated commodities to non-U.S. currency holders, thereby bolstering demand. President Donald Trump’s proposition to acquire Greenland has irked some European countries, prompting threats of new tariffs from Trump, while European leaders are contemplating appropriate counteractions. The recent sell-off in U.S. stocks, bonds, and the dollar reflects mounting concerns about America's global leadership, leading to increased interest in tangible assets. Last week, copper prices surged to unprecedented levels fueled by optimism about the global transition toward renewable energy and anticipated supply constraints owing to potential U.S. tariffs. However, prices have pulled back since as the U.S. postponed tariffs on crucial minerals, and China escalated its regulation of high-frequency trading, a significant element in commodity market dynamics.