Copper prices rose during Friday’s trading, heading toward a seventh consecutive month of gains, supported by optimism surrounding global demand growth.

The most-active copper futures contract on the London Metal Exchange climbed 1.3% to $13,478 per ton at 01:47 p.m. Makkah time, after touching its highest level since February 4 at $13,496 per ton.

Data released after the Lunar New Year holiday in China showed copper inventories in Shanghai Futures Exchange warehouses rising to their highest level in nearly 10 years, reaching 391.5 thousand tons, up 44% from levels seen two weeks earlier.

UBS raised its copper price forecasts by $500 per metric ton across all time horizons, projecting prices could reach $15,000 per metric ton by the end of March 2027. The bank maintained its positive outlook, recommending that investors keep long-term long positions in the industrial metal.

The investment bank expects copper prices to rise on a yearly basis despite caution in the near term. The recent price rally has paused temporarily, with elevated levels expected to persist through 2026, while seasonal economic slowdown around the Chinese Lunar New Year contributed to a period of price consolidation.

Supply and demand forecast revision

UBS updated its supply and demand forecasts based on the latest available data. The bank now expects a slightly smaller supply deficit in 2025 of around 200,000 metric tons, compared with a previous estimate of 230,000 tons.

At the same time, it raised its forecast for the 2026 supply deficit to 520,000 metric tons, up from a prior estimate of 407,000 tons. The widening supply gap remains one of the key factors supporting a bullish medium-term outlook for copper prices.

The bank reaffirmed its recommendation for clients to maintain long positions in copper based on revised supply-demand fundamentals, noting that its updated outlook implies prices will stay elevated throughout 2026.

Decline in Chilean output

On the production side, data from Chile’s national statistics agency showed that copper output in the world’s largest producer declined 3% year-on-year in January to 413,712 metric tons.

Industrial production in the Andes nation also fell 3.8% during the same month compared with a year earlier, indicating continued pressure on the global supply side of the metal.

In US trading hours, May copper futures were up 1.2% by 16:00 GMT at $6.07 per pound.

Bitcoin is facing strong technical pressure as it struggles to break through three key resistance levels at the same time, while the end of the current bear market may depend on its ability to clear these barriers during March.

Struggle with three major resistance levels

Data from TradingView showed that the BTC/USD pair was trading near $67,720 after facing rejection at the psychological $70,000 level.

Analysis of the current market structure indicates that several technical obstacles have clustered together to form a strong resistance zone, including:

the 200-week exponential moving average at $68,330

the previous all-time high from 2021 at $69,000

the psychological $70,000 level

Bitcoin failed to reclaim any of these levels after rallying to $70,040 on Wednesday.

Analyst known as Captain Faibik said the cryptocurrency needs a weekly candle close above the 200-week EMA to maintain bullish momentum. He added that if this condition is met, a rebound toward $80,000 could be expected in the coming days, noting that March may turn out to be a bullish month.

Cointelegraph previously reported that the bear market could end if Bitcoin manages to break above the average cost basis of holders in the 18–24 month age band, located around $74,500.

Five consecutive months of losses

Historical data from CoinGlass shows that Bitcoin is heading toward recording a fifth consecutive monthly loss after falling 14% during February. The last time the asset experienced a similar losing streak was at the end of 2018, during the peak of the previous bear market.

An analyst known as Alex said Bitcoin is approaching a rare bearish sequence, noting that the previous instance in 2018–2019 was followed by five strong green monthly candles and a fourfold rally.

After declining 57% between August 2018 and January 2019, Bitcoin recorded five consecutive months of gains, rising 317% from $3,329 to $13,880.

If historical patterns repeat, a trend reversal could begin in April, especially as selling pressure approaches levels that suggest market exhaustion.

Oil prices rose by more than $1 per barrel on Friday, as traders remained on alert over potential supply disruptions after the United States and Iran agreed to extend nuclear negotiations.

Brent crude futures climbed $1.38, or 1.95%, to $72.13 per barrel by 11:10 GMT, while US West Texas Intermediate crude rose $1.40, or 2.15%, to $66.61 per barrel.

Tamas Varga, oil analyst at brokerage PVM, said uncertainty continues to dominate the market, with fears pushing prices higher, noting that current moves are entirely driven by the outcome of the Iranian nuclear talks and the possibility of US military action against Tehran.

Limited weekly gains

On a weekly basis, Brent crude is heading for a modest gain of about 0.2%, while West Texas Intermediate is set for a marginal decline of 0.1%.

The United States and Iran held indirect talks in Geneva on Thursday, after US President Donald Trump ordered a military buildup in the region.

During the negotiations, oil prices jumped by more than $1 per barrel following media reports suggesting discussions had stalled due to Washington’s insistence on a full halt to Iran’s uranium enrichment. However, gains were trimmed after the Omani mediator announced progress in the talks.

Omani Foreign Minister Badr Albusaidi said both sides plan to resume negotiations next week, with technical-level discussions scheduled to take place in Vienna.

Suvro Sarkar, analyst at DBS Bank, said the latest round of talks provides some hope for a peaceful resolution, but stressed that military strikes remain a possible scenario.

Trump stated on February 19 that Iran must reach a deal on its nuclear program within 10 to 15 days, otherwise “very bad things” would happen.

Sarkar estimated that the geopolitical risk premium currently embedded in oil prices ranges between $8 and $10 per barrel, amid fears that any conflict could disrupt Middle East supply flows through the Strait of Hormuz, which handles around 20% of global oil supply.

Saudi moves and OPEC+ meeting in focus

To mitigate the impact of a potential strike, informed sources said Saudi Arabia is working to increase oil production and exports.

At the same time, OPEC+ is expected to consider raising output by about 137,000 barrels per day for April during its meeting scheduled for March 1, after previously pausing production increases in the first quarter of the year.

The US dollar edged slightly lower on Friday but remained on track to post monthly gains, supported by escalating geopolitical tensions and a more hawkish tone from the Federal Reserve.

By 03:00 a.m. ET (08:00 GMT), the US dollar index — which measures the greenback against a basket of six major currencies — rose 0.1% to 97.650, heading toward a monthly gain of around 1.4%.

Tensions in the Middle East support the dollar

The dollar benefited from growing concerns that the US military buildup in the Middle East could lead to conflict with Iran, despite ongoing meetings between the two sides to discuss Tehran’s nuclear program.

Mediators from Oman reported that the United States and Iran made progress during talks on Thursday, but several hours of negotiations ended without a clear breakthrough that could prevent potential US strikes.

Analysts at ING said any escalation between Washington and Tehran could have the strongest impact on the dollar at this stage. They added that the probability of a US strike on Iran by the end of March remains relatively high at 55%, according to estimates from the Polymarket platform, preventing markets from betting aggressively on further dollar weakness for now.

The dollar also received additional support from a relatively more hawkish tone at the Federal Reserve, after “several” policymakers at the January meeting signaled openness to raising interest rates again if inflation remains elevated.

US producer price index data for January is due later in the session, alongside scheduled remarks from Fed officials John Williams and Neel Kashkari.

Euro weakens amid European economic softness

In Europe, EUR/USD rose 0.1% to 1.1806, but the single currency is heading for a monthly loss of more than 1%, amid expectations that the European Central Bank will keep interest rates unchanged for several months.

Germany’s unemployment rose slightly in February by 1,000 people to 2.977 million, reflecting the ongoing impact of economic weakness over the past three years on Europe’s largest economy.

In France, consumer prices increased 1.1% year-on-year in February, beating expectations and signaling faster inflation after it had slowed in January to its lowest level in more than five years.

ING analysts said the 1.180 level could remain a pivot point for EUR/USD, as uncertainty related to Iran continues to limit strong directional bets in the market.

Pound slips after election setback

GBP/USD rose 0.1% to 1.3495, but the pound is set to end a three-month winning streak after falling more than 2% in February.

Britain’s Labour Party, led by Prime Minister Keir Starmer, suffered an embarrassing electoral defeat after losing one of its safest seats to the left-wing Green Party.

The development increases pressure on Starmer to demonstrate his leadership credentials after weeks of political turbulence and growing calls for his resignation. ING analysts noted that developments weakening Starmer’s position tend to weigh on the pound, particularly if they raise the probability of a more left-leaning leadership emerging.

Yen heads for monthly loss amid policy uncertainty

In Asia, USD/JPY fell 0.1% to 156.04 but remains on track for a monthly gain of around 0.6%, as the Japanese currency continues to struggle amid questions about the fiscal impact of stimulus plans and tax cuts proposed by Prime Minister Sanae Takaichi.

The ruling coalition’s landslide victory in Japan’s lower house has given Takaichi a clearer path to pass her fiscal agenda.

The yen also faced additional pressure due to rising uncertainty over the timing of the Bank of Japan’s next rate hike, especially after weak Tokyo core CPI data for February showed inflation falling below the central bank’s 2% target for the first time in nearly four years.

Moves in Asian and Australian currencies

USD/CNY rose 0.2% to 6.8552 after the People’s Bank of China removed the foreign-exchange risk reserve requirement on some forward contracts, a move that allows cheaper dollar purchases within the country.

The decision followed a strong rally in the yuan in recent months, partly driven by exporters selling US dollars amid a strong trade surplus with the United States.

Meanwhile, AUD/USD climbed 0.3% to 0.7125, with the Australian dollar heading for gains of more than 2% this month, supported by more hawkish expectations regarding Reserve Bank of Australia policy.