02.02.202602:17:45UTC+00Copper Extends Losses in Broad Metal Selloff

Copper prices experienced a decline of nearly 2% on Monday to approximately $5.8 per pound, continuing the significant losses observed from the previous session. This trend is part of a broader selloff affecting metals for the second consecutive day. The price of copper has now decreased by over 11% from its peak last week. On Friday, copper's value fell along with gold and silver as the speculative rally that had propelled these metals to unprecedented highs faced extensive profit-taking. This prompted investors to reevaluate the underlying reasons for the previously seen price surge. The most noticeable declines were observed in China, where heightened investor interest and market speculation had amplified the rally, leading to a swift downturn once market sentiment shifted. The nomination of Kevin Warsh, perceived as a stronger proponent of tighter monetary policies by U.S. President Donald Trump, also played a role in the declining prices of metals. Nonetheless, copper continues to garner support from expectations of increased long-term demand, juxtaposed with a constrained supply due to several decades of underinvestment in new mining initiatives.