Copper prices rose above $4.65 per pound as the US dollar weakened and China boosted its economy. Learn why copper is climbing and what might slow it down in 2025.
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Why Copper Prices Are Going Up
Copper prices went above $4.65 per pound on Thursday, continuing to climb this week. The main reason? The US dollar got weaker. When the dollar loses value, things priced in dollars, like copper, become cheaper for people using other currencies. This makes copper more appealing to buyers around the world.
The US Dollar and Debt Worries
The US dollar is feeling pressure because people are worried about the country’s money situation. President Donald Trump’s new budget plan might add over $3 trillion to the national debt. This news is making the dollar less strong, which helps push copper prices higher.
China’s Role in Copper Demand
China, the world’s biggest copper buyer, is also helping. The People’s Bank of China cut key interest rates this week to boost its economy and deal with trade challenges. Lower rates mean more money flowing, which can increase demand for copper.
More Copper Supply Could Slow the Rise
Even though prices are up, there’s a catch. South America is producing more copper ore, which might lead to too much copper in 2025. This extra supply is making some traders rethink their big bets on copper prices going even higher.
Trump’s Tariff Plans and Copper
Traders had been excited about copper because of possible new tariffs. President Trump announced a probe into copper imports, which could mean taxes on copper coming into the US. This made some people think prices would keep rising, but the extra supply is cooling those expectations.
