Copper prices rose on Tuesday during trading, supported by a decline in the US dollar against most major currencies, pushing the industrial red metal back toward its all-time record highs.

According to ANZ Bank analysts in a note reported by Reuters, Trump's announcement of a 50% tariff on copper imports is expected to lead the US market to rely more heavily on domestic inventories in the near term, which would place downward pressure on copper prices in both the COMEX and London exchanges.

Data released on Wednesday showed that copper inventories at the London Metal Exchange rose by 10,525 tons to a total of 121,000 tons, as eight LME warehouses in Hong Kong officially began operations this week.

Meanwhile, protesters in Peru — the world’s third-largest copper producer — ended a blockade of a key copper transport route that had lasted for more than two weeks, according to a protest leader speaking to Reuters late Tuesday.

At the same time, Rio Tinto announced on Wednesday a 9% increase in its quarterly copper production and projected full-year output to reach the upper end of its guidance. Antofagasta also reported an 11% rise in copper output during the first half of the year.

In a separate development, copper inflows into the United States have slowed as traders prepared for the implementation of 50% tariffs, set to take effect on August 1.

Meanwhile, the US dollar index declined by 0.3% to 97.6 points by 16:05 GMT, after recording a high of 97.9 and a low of 97.5.

In US trading, copper futures for September delivery rose by 0.8% to $5.68 per pound at 16:02 GMT, approaching the record high of $5.70 per pound set on July 8.

Bitcoin prices rose on Tuesday, recovering from earlier losses that came amid a wave of profit-taking across the broader cryptocurrency market following strong gains over the past two weeks.

The cryptocurrency rebounded during the European session, supported by notable institutional purchases. Strategy Inc. revealed on Monday that it had increased its Bitcoin holdings, now owning nearly 3% of the total global supply in circulation.

Bitcoin had recently surged to record levels above $123,000, with altcoins also posting significant gains amid optimism surrounding major US crypto regulatory legislation. Sentiment was further lifted by an announcement from Trump Media & Technology Group (Nasdaq: DJT), which disclosed a $2 billion Bitcoin reserve.

However, that bullish momentum faded on Tuesday. Bitcoin sharply pulled back from its recent highs, while altcoins also registered losses following several strong sessions.

Risk appetite was also dampened by growing uncertainty surrounding President Donald Trump's upcoming tariff decisions, set to take effect on August 1, alongside market caution ahead of next week’s Federal Reserve meeting.

As of 01:40 a.m. ET (05:40 GMT), Bitcoin was down 1% to $117,210.3.

Trump Media Discloses $2 Billion Bitcoin Holding

On Monday, Trump Media announced that it had acquired approximately $2 billion worth of Bitcoin, after raising nearly $2.3 billion to establish a strategic crypto reserve.

The news initially pushed Trump Media shares up 9% in intraday trading, before closing the session with a 3.1% gain.

The move underscores former President Donald Trump’s growing interest in cryptocurrencies. Several members of his family have launched crypto ventures this year, including World Liberty Financial Group and the meme coin $TRUMP—projects that have bolstered Trump’s personal wealth.

Earlier this year, Trump signed executive orders to create a strategic Bitcoin reserve and appointed a White House “crypto czar.” His growing support for the sector was further cemented by his recent signing of the GENIUS Act, a legislative framework for stablecoins. The law has been a key driver of the recent crypto rally, signaling increased US regulatory acceptance.

Still, Trump’s pro-crypto stance has raised concerns over potential conflicts of interest, as his legislative actions directly impact the value of assets he reportedly holds.

Crypto Prices Today: Altcoins Pull Back After Rally

The broader cryptocurrency market fell alongside Bitcoin as investors locked in gains following last week’s sharp rally.

Political and trade uncertainty—along with anticipation surrounding the Fed’s upcoming policy meeting—continue to weigh on appetite for high-risk assets like cryptocurrencies.

As of 13:59 GMT, Bitcoin was up 1% on CoinMarketCap to $119,300.

Oil prices declined for the third straight session on Tuesday, amid concerns that the escalating trade war between the United States and the European Union — two of the world’s largest oil consumers — could weaken fuel demand growth by reducing economic activity.

Brent crude futures fell by 49 cents, or 0.7%, to $68.72 a barrel by 09:15 GMT. US West Texas Intermediate (WTI) crude dropped by 60 cents, or 0.9%, to $66.60 a barrel.

The August WTI contract expires on Tuesday, while the more actively traded September contract fell by 47 cents, or 0.7%, to $65.48 a barrel.

Soojung Kim, an analyst at MUFG Bank, wrote in a note: “Oil prices fell for the third consecutive session… amid mounting pressure in trade negotiations between the United States and its partners.”

The administration of US President Donald Trump has set an August 1 deadline for countries wishing to reach trade agreements, or else face steep tariffs.

For their part, European diplomats said the European Union is considering a broader set of countermeasures against the United States, as chances for a satisfactory trade deal with Washington diminish.

The United States had previously threatened to impose 30% tariffs on imports from the European Union if an agreement is not reached.

Limited impact from dollar weakness

Weakness in the US dollar helped limit some of the losses in oil prices, as buyers using other currencies pay relatively less for dollar-priced oil.

Tony Sycamore, an analyst at IG Markets, wrote in a note: “Prices declined amid concerns over the trade war, which overshadowed the support from the weaker US dollar.”

Refining margins support prices

Market analysts noted that improved refining margins for distillate products (such as diesel and jet fuel), supported by falling inventories, are contributing to some price support.

John Evans, an analyst at PVM Oil, said in a note: “The decline could have been steeper if not for the continued performance of distillates, which remains supported by inventory drawdowns.”

Expectations of falling US inventories

Separately, a Reuters poll showed that US crude oil inventories likely declined by about 600,000 barrels during the week ending July 18, which could provide additional support to prices if confirmed by official data.

The dollar rose slightly on Tuesday, but activity in the currency market remained subdued, as investors awaited any signs of progress in negotiations ahead of the August 1 deadline, which could see hefty tariffs imposed on US trade partners that fail to strike deals with Washington.

The Japanese yen held on to most of its gains from the previous session, following the results of Japan’s upper house elections held over the weekend, which came in line with expectations, easing concerns in the markets. Focus is now on how quickly Tokyo can reach a trade agreement with Washington, and on the future of Prime Minister Shigeru Ishiba’s leadership.

With just over a week left until August 1, US Treasury Secretary Scott Besant said on Monday that the US administration is more concerned with the quality of trade agreements than their timing.

When asked whether the deadline could be extended for countries engaged in constructive negotiations with Washington, Besant said President Donald Trump would be the one to make that decision.

Uncertainty over the final shape of global tariffs has paralyzed foreign exchange markets, with currencies remaining confined to tight trading ranges, even as US stocks continue to post record highs.

Thierry Wizman, global currency and interest rate strategist at Macquarie Group, said: “Nothing that happens on August 1 is necessarily permanent, as long as the US administration remains open to dialogue, as suggested in Trump’s messages two weeks ago.”

The euro slipped slightly to $1.1692. The market is also awaiting the European Central Bank meeting this week, although it is not expected to change interest rates in the eurozone.

Stalled talks between Washington and Brussels

Reaching a trade agreement between the European Union and the United States remains out of reach, as the bloc could face tariffs of up to 30% starting August 1. European diplomats said on Monday that they are considering a broader range of countermeasures as hopes for an agreement fade.

Francesco Pesole, currency strategist at ING Bank, said: “The Trump administration has shown little tolerance for retaliatory actions, and there’s a risk that matters could escalate (even if temporarily) into a tit-for-tat tariff spiral. The euro’s ability to hold its ground against the dollar amid tariff tensions will depend on the scale of escalation and whether the EU ends up worse off compared to other countries that succeed in striking deals with Washington.”

Separately, the European Central Bank said in a survey published Tuesday that demand for corporate loans in the euro area improved in the past quarter, and is expected to continue improving in the current quarter, despite tariff threats and rising geopolitical tensions.

The dollar index – which measures the performance of the US currency against a basket of currencies – rose by 0.1% to 97.91, after falling by 0.6% on Monday.

Concerns over Federal Reserve independence

Investor concerns over the independence of the US Federal Reserve also persisted, especially with Trump continuing his attacks on Fed Chair Jerome Powell and calling for his resignation over the bank’s refusal to cut interest rates.

Jonas Goltermann, deputy chief economist at Capital Economics, said: “Our base case is that strong US economic data, along with inflation boosted by tariffs, will lead the FOMC to keep interest rates unchanged until 2026, which will widen the interest rate differential in favor of the dollar and support its recovery in the coming months.”

He added with a warning: “However, that outlook remains at the mercy of White House volatility.”

The Japanese yen in focus

The Japanese yen remained in focus on Tuesday, as it slipped slightly to 147.64 yen per dollar, after rising by 1% on Monday following the elections and Japan’s public holiday.

Lee Hardman, senior currency analyst at MUFG Bank, said: “The initial relief for the yen – due to the ruling coalition not losing more seats, and Prime Minister Ishiba holding on to power – is likely to be short-lived.”

He added: “Rising political uncertainty in Japan may complicate efforts to reach a timely trade agreement with the United States, posing downside risks for the Japanese economy and the yen.”