Copper prices fell on Thursday, pressured by a stronger US dollar and profit-taking after the metal climbed to a five-month high, ahead of key US employment data and amid uncertainty surrounding tariffs.

Three-month copper on the London Metal Exchange declined by 0.6% to $9,917 per metric ton as of 09:45 GMT, after touching its strongest level since March 26 at $10,038 in the previous session.

This leaves copper with a gain of about 13% year-to-date.

Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, said: “It seems to be simply profit-taking ahead of these economic data. Also, the $10,000 level is currently a strong barrier for copper prices, while underlying fundamentals are not strong enough to break through it.”

US private payroll data and monthly job cuts are due later on Thursday, followed by the crucial nonfarm payrolls report on Friday, which will help shape expectations for the Federal Reserve’s upcoming policy meetings.

In China, the most-traded copper contract on the Shanghai Futures Exchange slipped 0.5% to 79,770 yuan ($11,152.12) per ton.

Metals markets were also affected by a steady US dollar, which makes commodities priced in the greenback more expensive for holders of other currencies.

Market concerns were further fueled by uncertainty over demand in China, the world’s largest consumer of metals. Galaxy Futures noted that modest weakness in end-user demand could reflect a muted season in China, though widespread shutdowns of recycled copper rod plants have provided some support to prices.

China’s refined copper output is expected to post a rare monthly decline in September — the first for the period since 2016 — due to new tax regulations restricting scrap copper supply.

As for other base metals, aluminum lost 0.7% to $2,601 per ton, nickel fell 0.6% to $15,215, zinc declined 0.7% to $2,842, and tin eased 0.6% to $34,480, while lead was steady at $1,995.50.

The dollar index rose 0.2% to 98.3 by 15:02 GMT, after reaching as high as 98.4 and as low as 98.08.

On US trading, COMEX copper futures for December delivery dropped 1.2% to $4.57 per pound by 15:00 GMT.

Bitcoin price stabilized near the level of $110,800 at the time of writing on Thursday trading, after recovering slightly during this week. Traders are adopting a cautious approach ahead of important US economic data due on Friday, which may affect expectations regarding the Federal Reserve’s monetary policy, keeping cryptocurrency markets in a state of anticipation.

Meanwhile, spot Bitcoin exchange-traded funds (Spot Bitcoin ETFs) continued to attract strong inflows, recording more than $300 million of inflows on Wednesday, extending their positive streak for the second day in a row.

Traders await key economic data

Bitcoin price began the week on a slightly positive note, recovering modestly to stabilize around $110,500 on Thursday, after extending its downward trend for three consecutive weeks from its all-time high of $124,474.

US job openings (JOLTS) data released Wednesday showed a slowdown in the labor market, which strengthened bets that the Federal Reserve will cut borrowing costs later this month. According to CME FedWatch Tool, the probability of a 25 basis point rate cut at the conclusion of the two-day policy meeting ending on September 17 reached 97.6%.

Market participants also expect the Fed to implement at least two additional rate cuts by the end of 2025, which could support high-risk assets such as Bitcoin.

Traders are now focusing on US economic data due Thursday, including the ADP private employment report, weekly jobless claims, and the ISM services PMI. However, eyes will remain fixed on the nonfarm payrolls (NFP) report for August, scheduled for release on Friday at 12:30 GMT. This crucial economic data will provide clearer signals on the path of rate cuts and give the world’s largest cryptocurrency by market capitalization new momentum in its direction.

Institutional demand supports prices

Bitcoin price received institutional support this week. Data from SoSoValue showed spot Bitcoin ETFs posted new inflows of $301.32 million on Wednesday, after $332.76 million on Tuesday. If inflows continue and accelerate, BTC price may see further recovery.

According to the 2025 Global Crypto Adoption Index released earlier this week by Chainalysis, India, the United States, and Pakistan ranked in the top three, followed by Vietnam and Brazil.

The report noted that the Asia-Pacific region (APAC) led growth in on-chain crypto transactions, with a 69% year-on-year increase, driven mainly by India, Vietnam, and Pakistan, while Latin America came second with 63% growth.

It also confirmed that Bitcoin remains the main gateway to the crypto economy, attracting more than $4.6 trillion in cash inflows (from fiat currencies) between July 2024 and June 2025 — double the inflows captured by other Layer 1 coins excluding Bitcoin and Ethereum.

Companies allocate 22% of profits to Bitcoin

Financial services company River published a research report this week showing that many companies allocate far more than the default 1% of funds to Bitcoin. A survey conducted by the company in July 2025 revealed that companies using its services invest an average of 22% of net income in Bitcoin, while the median investment was 10%, reflecting the accelerating pace of adoption at the business level.

The report showed that 63.6% of these companies view Bitcoin as a long-term investment and continue to accumulate it without plans to sell or rebalance in the foreseeable future.

Technical outlook: Signs of fading negative momentum

Bitcoin price recovered slightly on Monday after a correction of nearly 5% in the previous week. It closed above its 100-day exponential moving average (EMA-100) at $110,736 on Tuesday and found support above it the following day. At the time of writing on Thursday, it was moving near this average around $110,800.

If Bitcoin continues its recovery, the rally could extend toward the daily resistance level at $116,000.

The Relative Strength Index (RSI) on the daily chart showed a reading of 44, just below the neutral level of 50, indicating fading negative momentum. Meanwhile, the MACD lines are converging with shrinking red bars on the histogram, suggesting a possible bullish crossover soon.

Oil prices fell on Thursday, extending losses of more than 2% from the previous session, as investors looked ahead to a key OPEC+ meeting at the end of the week, where producers are expected to discuss another increase in output targets.

Brent crude slipped 43 cents, or 0.6%, to $67.17 a barrel, while US West Texas Intermediate (WTI) crude dropped 44 cents, or 0.7%, to $63.53.

Two sources familiar with the talks told Reuters that eight members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies – collectively known as OPEC+ – will consider additional production hikes starting in October, as the group seeks to regain market share.

Thomas Varga, analyst at PVM, said any potential increase in OPEC+ output would send a strong signal that reclaiming market share has become a greater priority than supporting prices.

OPEC+ had already agreed to raise output targets by about 2.2 million barrels per day between April and September, in addition to granting the UAE a production quota increase of 300,000 barrels per day.

In recent months, despite the accelerated pace of output hikes, Middle Eastern crude prices have remained the strongest among global regional markets. According to a report from Haitong Securities, this has bolstered Saudi Arabia’s and other OPEC members’ confidence in moving forward with higher production.

Prices also came under pressure from weak US economic data showing job openings in July fell to their lowest level in 10 months, signaling a slowdown in labor market conditions and strengthening expectations of a Federal Reserve rate cut this month.

Investors are also awaiting official US government data on crude inventories, due Thursday – a day later than usual because of Monday’s holiday – to gauge demand strength in the world’s largest oil consumer.

Industry data from the American Petroleum Institute (API) released Wednesday showed US crude stocks rose by 622,000 barrels in the week ending August 29, according to market sources.

The US dollar held steady on Thursday in a volatile week, as investors grappled with a fragile bond market and labor market data that reinforced expectations the Federal Reserve will cut interest rates this month.

With the Fed focused on employment indicators, Friday’s nonfarm payrolls report is set to be a key driver in shaping investor expectations for upcoming policy meetings.

Data released Wednesday showed job openings fell in July to their lowest level in 10 months, though layoff rates remained relatively subdued. Additional reports on private-sector hiring and monthly layoffs were due Thursday.

According to CME’s FedWatch tool, traders are now pricing in nearly a 100% probability of a rate cut this month, up from 89% a week earlier, and are expecting cumulative easing of 139 basis points by the end of next year.

The dollar traded slightly higher in relatively calm conditions, as investors refrained from making major moves ahead of Friday’s employment report.

The euro was steady at $1.1655, while sterling held at $1.3445, above Wednesday’s four-week low. The dollar index edged up to 98.23. Against the yen, the dollar gained 0.2% to ¥148.33.

Several Fed officials reiterated that labor market concerns continue to underpin their view that further rate cuts lie ahead, reinforcing market expectations of imminent action from the central bank. James Knightley, chief international economist at ING, said the Fed is “very likely to cut rates significantly in the coming months, with limited inflationary pressures coming from the labor market.” He added that ING expects 25 basis point cuts at the September, October, and December FOMC meetings.

The Fed will next meet on September 16–17.

Bond Market Concerns

This week, attention remained centered on the global bond market, where long-term yields climbed amid concerns over fiscal positions in major economies including Japan, the UK, and the US.

Lee Hardman, currency strategist at MUFG, noted: “Global bonds recovered some losses yesterday, providing temporary relief and helping to stabilize the FX market.”

A successful auction of 30-year Japanese government bonds on Thursday eased investor concerns, while dovish-leaning Fed remarks supported a modest rally in US Treasuries, pushing yields lower. The US 30-year Treasury yield slipped one basis point on the day to 4.888%, after touching 5% on Wednesday, its highest in about six weeks.

Uday Patnaik, head of Asian fixed income and emerging market debt at L&G Investment Management, said higher yields reflect weak fiscal dynamics across major advanced economies, where debt-to-GDP ratios exceed 100%. “The issue is that none of these countries are running primary surpluses, meaning revenues don’t cover even non-interest spending. Fixing this will require major spending cuts or revenue increases at a time when social and political pressures are rising,” he warned.

Other Currencies

The Australian dollar fell 0.28% to $0.6525, while the New Zealand dollar slipped 0.23% to $0.5865.