Copper prices edged lower on Tuesday after giving up earlier gains, pressured by a strengthening U.S. dollar and growing concerns over global economic slowdown and weakening demand due to new U.S. tariffs. Rising copper inventories also weighed on the market, according to traders.

Copper Near 3-Month High

Benchmark copper on the London Metal Exchange (LME) rose slightly by 0.1% to $9,835 per metric ton as of 10:30 GMT, hovering near last week’s three-month peak of $10,020.50.

Earlier support came from a weaker dollar, which makes dollar-denominated commodities more attractive to holders of other currencies, potentially boosting demand for industrial metals like copper.

U.S. Tariffs Cast a Shadow

On Monday, the U.S. issued formal notifications to 14 countries announcing new tariffs ranging between 25% and 40%, set to take effect on August 1 after being postponed from the original July 9 deadline.

President Donald Trump also threatened an additional 10% tariff on BRICS nations—including Brazil, Russia, India, and China—if, as he stated, they continue "anti-American policies" during their ongoing summit in Brazil.

Copper Inventories Climb—But Market Still Needs Deliveries

LME-registered warehouse copper stocks rose to 102,500 tons—an increase of 13% (11,875 tons) since June 27—easing immediate supply concerns.

However, traders noted the market still lacks sufficient physical deliveries to satisfy demand. The cancellation rate, which tracks material due to leave warehouses, stood at 36%, suggesting 37,100 tons are scheduled to be shipped out soon.

Meanwhile, the tom-next spread (difference between spot and next-day delivery) widened to $13 per ton ahead of next week’s contract settlement, when short positions must either close or roll over.

Other Base Metals Movement

Aluminum rose 0.3% to $2,582/ton, though inventories at the LME surged by 47,450 tons since June 25 to 384,350 tons, flipping the cash premium to a discount.

Zinc gained 0.8% to $2,706/ton.

Lead climbed 0.4% to $2,045/ton.

Tin added 0.4% to $33,410/ton.

Nickel slipped 0.3% to $15,130/ton.

The U.S. Dollar Index rose 0.3% to 97.7 by 15:54 GMT, reaching a session high of 97.8 and a low of 97.1.

In U.S. trading, COMEX copper futures for September delivery fell 0.8% to $4.98 per pound as of 15:52 GMT.

Bitcoin remained steady near the $108,000 level on Tuesday, showing resilience despite renewed tensions in global markets. The move follows a fresh wave of risk aversion triggered by President Donald Trump's issuance of additional tariff letters to several countries and the extension of the reciprocal tariffs deadline to August 1.

Despite trade uncertainty, institutional interest continues to support price

Despite mounting trade-related uncertainty, institutional and corporate interest in Bitcoin remains strong. Investment firm Murano announced the addition of Bitcoin to its corporate treasury, while spot Bitcoin ETFs recorded fresh inflows on Monday, helping stabilize the cryptocurrency near current levels.

Bitcoin holds firm amid tariff-related uncertainty

Bitcoin continued to trade steadily around the $108,000 level during Tuesday’s European session, after a slight decline the day before. Despite Trump’s tariff announcement on Monday, the cryptocurrency showed notable stability.

According to a report from The Kobeissi Letter, Trump issued further "tariff letters" targeting a group of Asian and African nations, and warned that any country aligning with the BRICS alliance’s anti-American policies would face an additional 10% tariff — with no exceptions.

These tariffs are scheduled to take effect on August 1, sparking a new wave of global risk-off sentiment and pushing Bitcoin briefly below $109,000 on Monday.

Analyst Harish Menghani of FXStreet commented: “With no major U.S. economic data on Tuesday, market attention will shift to the FOMC meeting minutes set to be released Wednesday.”

Investors will be looking for signals on the Federal Reserve’s interest rate trajectory — a key factor in dollar demand and, by extension, Bitcoin’s price action as the world’s largest digital asset by market capitalization.

Murano Hotels joins corporate Bitcoin treasury race

Murano Global Investments — a Nasdaq-listed real estate firm focused on hotels and resorts — announced Monday that it had enhanced its institutional strategy by building a Bitcoin treasury.

The company recently purchased 21 BTC and joined the “Bitcoin for Corporations” initiative, a program led by Michael Saylor’s MicroStrategy to accelerate institutional adoption of Bitcoin.

Murano also entered into a standby equity purchase agreement (SEPA) with Yorkville for up to $500 million. Proceeds from future share sales will be directed in part toward Bitcoin investments under the company’s general corporate strategy.

Beyond corporate treasuries, institutional investor interest remains robust. Data from SoSoValue showed that spot Bitcoin ETFs recorded $216.64 million in net inflows on Monday — the third consecutive day of positive flows since July 2.

Should these inflows persist or accelerate, Bitcoin may test or even surpass its previous record highs.

Signs of escalating geopolitical tensions

The BBC reported Tuesday that President Donald Trump announced the U.S. will resume shipments of weapons to Ukraine, reversing a previous decision last week to pause certain critical military aid.

In a meeting with Israeli Prime Minister Benjamin Netanyahu, Trump stated he was “not happy” with Russian President Vladimir Putin, adding that “Ukraine is facing very severe attacks.”

Pentagon spokesperson Sean Parnell confirmed in a statement: “At the direction of President Trump, the Department of Defense is sending additional defensive weapons to Ukraine to ensure its ability to defend itself, while we work toward a lasting peace and an end to the killing.”

This development signals a potential escalation in the war in Ukraine. Should geopolitical and military tensions intensify further, investors may shift toward traditional safe-haven assets such as gold — a shift that could dampen sentiment toward risk-on assets like Bitcoin.

Oil prices declined on Tuesday after climbing nearly 2% in the previous session, as investors assessed the latest developments regarding U.S. tariffs and OPEC+’s larger-than-expected production hike for August.

Slight drop in Brent and WTI futures

Brent crude futures fell by 12 cents, or about 0.2%, to $69.46 per barrel by 10:43 GMT. U.S. West Texas Intermediate (WTI) crude dropped 25 cents, or roughly 0.4%, to $67.68.

Mixed signals from Washington on tariffs

On Monday, President Donald Trump began notifying trade partners that elevated U.S. tariffs would take effect on August 1, but later clarified that the date was not “100% final.”

These conflicting messages added uncertainty to the markets amid concerns over the potential negative impact of tariffs on global economic activity and oil demand.

Pressure from OPEC+, support from geopolitical tensions

Analyst Yaniv Shah at Rystad Energy noted that prices are under pressure from OPEC+’s removal of voluntary cuts. However, tightness in middle distillate supplies and Houthi attacks on commercial vessels are lending some support to the market.

Unprecedented production hike for August

In its meeting on Saturday, the OPEC+ alliance — which includes the Organization of the Petroleum Exporting Countries and its allies — agreed to increase output by 548,000 barrels per day in August, surpassing the previous monthly increases of 411,000 barrels.

Investor optimism ahead of high-demand season

Investors entered the market with optimism ahead of the peak demand season in the U.S. Data from the U.S. Commodity Futures Trading Commission (CFTC) on Monday showed that money managers increased their net long positions in crude oil futures and options for the week ending July 1.

Warnings of downward price pressure in the fall

Analysts at HSBC warned that with seasonal demand cooling off, the rise in OPEC+ exports will weigh on the market and increase downside risks to prices.

Commerzbank forecasts that Brent crude may fall to $65 per barrel due to a build-up in excess supplies during the autumn months.

Near-total unwinding of voluntary cuts since 2023

The recent OPEC+ decisions effectively dismantle nearly all of the 2.2 million barrels per day in voluntary cuts that the group had implemented since 2023.

According to sources cited by Reuters, OPEC+ is expected to approve an additional increase of around 550,000 barrels per day for September at its upcoming meeting on August 3 — effectively eliminating the remaining production curbs.

The U.S. dollar held steady against most major currencies during Tuesday trading amid the ongoing trade escalation led by President Donald Trump's administration against other economies.

President Donald Trump had earlier warned countries aligning with the BRICS alliance’s policies — which conflict with American interests — that they would face additional tariffs of 10%.

Trump wrote on social media: “Any country that aligns with BRICS’s anti-American policies will face an additional 10% tariff. There will be no exceptions to this policy.”

Trump has long criticized the BRICS group, which includes China, Russia, and India among its members.

The United States had initially set July 9 as a deadline for countries to reach trade agreements, but U.S. officials now say tariffs will begin on August 1. Trump stated that he will send letters to countries informing them of the tariff rates if no agreements are reached.

However, on Monday, President Donald Trump announced that his administration will impose 25% tariffs on imports from South Korea and Japan starting August 1, as part of a new batch of letters to be sent to several foreign nations.

The White House also confirmed on Monday that President Trump will sign an executive order extending the temporary freeze on so-called “reciprocal tariffs” until August 1, granting targeted countries an additional three-week window to reach trade deals with the United States.

President Donald Trump’s administration has already notified 14 countries of new tariffs ranging between 25% and 40%, effective August 1.

As for trading levels, the dollar index remained weakly stable as of 11:06 GMT at 97.4 points, with a session high at 97.5 and a low at 97.1 points.