The Federal Reserve's hawkish stance and the strengthening US dollar put pressure on metal prices, causing copper prices to fall.

Golden Ten Data reported on June 29 that copper prices have fallen as the Federal Reserve's hawkish stance and a stronger US dollar continue to undermine market confidence in industrial metals. The price of London three-month copper futures dropped to around $13,300 per ton after two consecutive weeks of declines. Previously, Federal Reserve policymakers had indicated that they would further raise interest rates in the coming months to address persistently high inflation in the US. Last week, the US dollar reached its highest level since November last year. In addition, US trade policy is also under scrutiny as the market expects that the Trump administration may impose tariffs on the circulation of refined metals. On the other hand, Goldman Sachs stated that the Iran conflict will ultimately boost metal demand. Analyst Samantha Dart and others noted in a report that increased demand for electric vehicles, further growth in renewable energy investment, rising defense spending, and intensified competition in the AI race will all support copper demand. The bank recently raised its average copper price forecasts for the end of 2026 and 2027 to $13,735 per ton and $13,800 per ton, respectively.