Copper prices climbed back above $11,000 per metric ton this week, supported by several remarks made during a copper industry conference in Shanghai, according to Volkmar Bauer, FX market analyst at Commerzbank.

Uncertainty over US tariffs fuels stockpiling on COMEX

Bauer said: “The head of a metals and mining research firm warned that copper prices in the United States may continue to trade at higher levels compared with the global market, due to uncertainty surrounding US tariffs. This could trigger further stockpiling on COMEX and lead to a decline in inventories outside the US. Concerns over raw material shortages are adding further pressure, with the firm estimating that the copper concentrate market will face a deficit of around 500,000 tons next year.”

He added: “A representative from a Canadian mining company noted that global smelter operating rates have fallen to an all-time low of 75% due to a shortage of feedstock. These rates may fall even further if supply conditions fail to improve. Despite these warnings and the downbeat commentary, the latest data provides little evidence of any slowdown in copper production.”

Bauer continued: “As we have pointed out on several occasions, China has maintained high levels of metals production. However, plans to build an additional two million tons of new smelting capacity have been suspended, according to an official from the China Nonferrous Metals Industry Association at the conference. Moreover, available inventories on the London Metal Exchange have increased in recent weeks, rising by about 100,000 tons from their June lows to the highest level in nearly nine months. Therefore, we believe the near-term upside potential for copper prices remains limited.”

Bitcoin held steady on Friday after climbing back above the $90,000 mark this week, as markets intensified their bets on an imminent interest-rate cut by the Federal Reserve and assessed the implications of a potential change in leadership at the US central bank.

The world’s largest cryptocurrency was trading flat at $91,202.9 by 01:32 Eastern Time (06:32 GMT), after briefly dropping to nearly $80,000 last Friday — its weakest level since April.

Bitcoin was on track to post a weekly gain of roughly 8% after four straight weeks of losses, supported by institutional inflows.

Rate-cut bets surge sharply and support Bitcoin’s recovery

The rebound coincided with a strong jump in expectations of a rate cut at the Fed’s December meeting. The CME FedWatch tool showed the probability of a 25-basis-point cut soaring to around 87%, a sharp rise from about 39% just a week earlier.

Lower interest rates tend to make high-risk assets such as Bitcoin more attractive by easing liquidity constraints and encouraging investment flows.

Adding to the positive sentiment are rising expectations that Kevin Hassett — a White House economic adviser — could be nominated as the next Fed chair.

Many market participants view him as more dovish compared with current policymakers, potentially steering the central bank toward a more aggressive path of rate reductions.

This possibility appears to reinforce expectations of a more accommodative monetary stance, supporting investor appetite for risk-on assets.

Still, investors remain cautious; sticky inflation and mixed US economic data have prompted some to question how quickly or forcefully the Fed may move, raising concerns over whether Bitcoin’s rebound marks the start of a sustainable uptrend or merely a temporary bounce.

Cryptocurrency prices today: muted performance for altcoins in tight ranges

Most alternative cryptocurrencies traded within narrow ranges on Friday, echoing Bitcoin’s subdued tone.

Ether, the world’s second-largest cryptocurrency, slipped 0.5% to $3,013.92.

XRP, the third-largest token, was little changed at $2.21.

Brent crude futures were little changed on Friday, as investors monitored progress in peace talks between Russia and Ukraine and awaited the outcome of the OPEC+ meeting scheduled for Sunday, looking for signals on potential supply shifts that continue to pressure prices.

Front-month Brent futures — which expire on Friday — were unchanged at $63.34 a barrel by 01:34 GMT in thin trading, after settling 21 cents higher on Thursday. The more active February contract stood at $62.85 a barrel, down two cents.

US West Texas Intermediate crude rose 35 cents, or 0.60%, to $59.00 a barrel. There was no settlement on Thursday due to the US Thanksgiving holiday.

Both benchmarks were heading toward a fourth straight monthly loss, the longest losing streak since 2023, driven by increased global supply that has weighed on prices.

Investors are watching talks on a Washington-led peace deal between Russia and Ukraine that could result in the lifting of Western sanctions on Russian oil, potentially boosting global supply and pushing prices lower.

Russian President Vladimir Putin said on Thursday that the draft peace proposals discussed by the United States and Ukraine could serve as a basis for future agreements to end the conflict in Ukraine, but emphasized that Russia would continue fighting if no accord is reached.

Putin added that US President Donald Trump’s special envoy, Steve Witkoff, plans to visit Moscow early next week.

For his part, Ukrainian President Volodymyr Zelensky said on Thursday that delegations from Ukraine and the United States will meet this week to finalize a formula agreed during the Geneva talks to achieve peace and secure security guarantees for Kyiv.

“After several promising starts that failed to materialize, participants are reluctant to take strong positions until there is tangible progress — or a breakdown in the talks,” said IG Markets analyst Tony Sycamore in a note.

OPEC+ meeting expectations

OPEC+ is expected to keep oil production levels unchanged during its meetings on Sunday and agree on a mechanism to assess member countries’ maximum production capacity, according to two delegates from the group and a source familiar with OPEC+ discussions cited by Reuters.

Weekly gains supported by hopes of a US rate cut

Brent and WTI were on track to end the week more than 1% higher, supported by expectations that the Federal Reserve will cut interest rates, potentially boosting economic growth and oil demand.

A drop in the number of active US oil rigs to the lowest level in four years this week also provided additional support to prices.

The US dollar headed on Friday toward its worst weekly performance since late July, as traders intensified their bets on further monetary easing by the Federal Reserve next month, while liquidity remained thin due to the Thanksgiving holiday in the United States.

The dollar index — which measures the US currency against a basket of six major peers — was last up 0.1% at 99.624, recovering part of its losses after a five-day decline pushed it to its worst weekly drop since July 21.

Fed funds futures were pricing in an implied 87% probability of a 25-basis-point rate cut at the December 10 policy meeting, compared with 39% a week earlier, according to CME’s FedWatch tool.

The yield on the US 10-year Treasury was up 0.8 basis point at 4.0037%, after a rebound that followed five straight days of declines which had pushed the yield to briefly slip below 4% twice.

The Japanese yen swings as data support tightening

In Asia, the Japanese yen fluctuated between gains and losses after a period of weakness, and was last down 0.1% at 156.385 per dollar, as labor-market and inflation data supported expectations that Japan is moving toward policy tightening, despite the currency’s continued weakness that has increased the likelihood of intervention by the Ministry of Finance.

The yen had briefly strengthened after data showed Tokyo consumer prices rising 2.8% in November, beating economists’ expectations and exceeding the Bank of Japan’s 2% target.

“With the labor market remaining tight and core inflation (excluding fresh food and energy) still above 3% for now, the Bank of Japan will resume its tightening cycle in the coming months. The bottom line is that the case for policy tightening remains intact,” Capital Economics analysts said in a research note.

The yen is on track for a third month of losses, at a time when the government of Prime Minister Sanae Takaichi is rolling out a 21.3 trillion-yen ($135.4 billion) stimulus package, while the BOJ continues to hold off on raising interest rates despite inflation exceeding its target.

The euro and sterling hold steady… and attention turns to efforts to end the Ukraine war

The euro held at $1.1600 with little change during Asian trading, after Ukrainian President Volodymyr Zelensky said Thursday that delegations from Ukraine and the United States will meet this week to discuss a formula agreed during the Geneva talks to end the war with Russia and secure safety guarantees for Kyiv.

Sterling dipped 0.1% to $1.323 but was headed for its best weekly performance since early August, after UK Finance Minister Rachel Reeves unveiled plans on Wednesday to raise taxes by £26 billion ($34 billion).

Reeves on Thursday responded to criticism of the spending plans, which would finance additional social-welfare allowances by lifting the tax burden to its highest level since World War II.

Commodity currencies: the Australian dollar, the yuan, and the kiwi

The Australian dollar was trading at $0.6536, up 0.1% in early dealings, after data showed private-sector credit rising 0.7% in October from the previous month, a slight acceleration from the prior reading.

The offshore yuan held at 7.074 per dollar and is on track for its best monthly performance since August.

The New Zealand dollar — the “kiwi” — traded at $0.5725, down 0.1%, after ending its strongest week since late April.