Copper: Pullback on macro and tariff risks – ING

💡 DMK Insight

Copper’s dip below $14,000/t signals a critical moment for traders: demand fears are creeping in. The recent rally was short-lived, and with US-Iran tensions escalating, traders need to reassess their positions. Rising geopolitical risks often lead to volatility in commodities, and copper is no exception. If demand expectations continue to weaken, we could see further downside pressure. Keep an eye on macroeconomic indicators, especially those related to manufacturing and construction, as they directly impact copper consumption. On the flip side, if tensions ease or if there’s positive news on the economic front, we might see a rebound. Watch for key support levels around $13,800/t; a break below could trigger more selling. Conversely, a recovery above $14,200/t might reignite bullish sentiment. Traders should also monitor related assets like ETFs focused on industrial metals, as they could reflect broader market trends.