Copper prices fell sharply during Monday’s trading amid thin liquidity and profit-taking as 2025 approaches its end.

Copper, a key metal for the renewable energy and industrial infrastructure sectors, is on track to post its strongest annual gain in more than 15 years, having risen by over 35% during 2025.

The metal has increasingly been grouped alongside silver and gold as an investment safe haven, amid concerns over the weakening value of the US dollar. In December, copper prices surged past $12,000 per tonne, marking their strongest rally since the post-2008 global financial crisis recovery.

In a post on X, one analyst wrote: “Copper has officially entered price discovery after decisively breaking through key resistance levels. It may prove to be one of the most important macro assets in 2026 in my view. Price discovery moves are often explosive by nature, and I believe that is the case here. Let’s go.”

According to Parthiv Jhonsa, Vice President at Anand Rathi Institutional, the sharp rise in Hindustan Copper shares — which have nearly doubled since the start of the year — is not solely driven by higher copper prices. Instead, it reflects a combination of sustained growth in production volumes, extensions of mining concession contracts, and structural constraints on the supply side.

Speaking to ET Now, Jhonsa said that copper prices reaching $13,000 per tonne on the London Metal Exchange have undoubtedly supported sentiment, but the stock’s re-rating points to deeper fundamental drivers beyond short-term price movements.

Meanwhile, the US dollar index edged down by less than 0.1% to 97.9 points by 14:44 GMT, after touching a high of 98.1 and a low of 97.9.

In US trading, March copper futures fell 4.3% to $5.58 per pound by 14:40 GMT.

Bitcoin rose to trade near the key $90,000 level on Monday after briefly breaking above it earlier in the session, but the cryptocurrency once again struggled to hold gains above that threshold, repeating a pattern of failed rebound attempts seen earlier this month.

The world’s largest cryptocurrency was last up 2.2% at $89,663.6 as of 02:07 a.m. US Eastern Time (07:07 GMT).

Bitcoin has tested the $90,000 level several times throughout December, but each attempt has been followed by pullbacks as buying momentum faded and trading volumes remained thin heading into year-end.

Bitcoin supported by Fed rate-cut bets, but stalls near $90,000

Monday’s advance in Bitcoin was supported by broader strength across financial markets, as investors continued to price in expectations that the US Federal Reserve will deliver further interest rate cuts in 2026 following its latest reduction.

Lower interest rate expectations typically support risk assets, including cryptocurrencies, by reducing the appeal of holding cash and fixed-income investments and encouraging capital flows into higher-yielding alternatives.

The move also came as Bitcoin attempted to catch up with gains seen across other asset classes.

Gold hovered near record highs, while silver and platinum posted fresh peaks, as investors assessed ongoing geopolitical risks, including US-led talks aimed at ending the war in Ukraine, which have yet to deliver a clear breakthrough.

Strength in precious metals underscored continued demand for safe-haven and alternative assets, providing a supportive backdrop for cryptocurrency markets.

Despite the positive tone, Bitcoin’s gains remained capped, with traders pointing to profit-taking and weak liquidity as key headwinds. The $90,000 level continues to be viewed as a major psychological and technical barrier, requiring stronger catalysts to trigger a sustained rally.

Institutional participation was also mixed, after having supported crypto markets earlier in the year, as some funds adopted a wait-and-see approach ahead of key economic data releases at the start of the new year.

Cryptocurrency prices today: modest gains for altcoins

Most major alternative cryptocurrencies posted modest gains on Monday.

Ethereum, the world’s second-largest cryptocurrency, rose 2.7% to $3,018.92.

XRP, the third-largest cryptocurrency, gained 1.5% to $1.90.

Solana advanced 2.7%, while Cardano and Polygon edged slightly lower.

Oil prices rose by more than $1 on Monday, as investors weighed talks between the US and Ukrainian presidents over the possibility of reaching an agreement to end the war in Ukraine against the risk of oil supply disruptions in the Middle East.

Brent crude futures climbed $1.27, or 2.1%, to $61.91 a barrel by 12:00 GMT, while US West Texas Intermediate crude rose $1.29, or 2.3%, to $58.03 a barrel.

Both benchmarks had fallen by more than 2% on Friday.

Axel Rudolph, an analyst at IG, said energy markets moved higher as geopolitical developments supported crude prices, with Brent gaining on renewed tensions in the Middle East and shifts in peace talks over Ukraine. He added that low liquidity could amplify volatility heading into the start of the new year.

Ukrainian President Volodymyr Zelenskyy said on Monday that significant progress had been made in talks with his US counterpart Donald Trump, and that both sides agreed US and Ukrainian working groups would meet next week to finalize outstanding issues aimed at ending Russia’s war on Ukraine.

Zelenskyy added that holding a meeting with Russia would only be possible after Trump and European leaders agree on a peace framework proposed by Ukraine.

Yang An, a China-based analyst at Haitong Futures, said the Middle East had also seen instability recently, citing Saudi air strikes in Yemen, which may be fueling market concerns over potential supply disruptions.

Saudi Arabia, the world’s largest oil exporter, is expected to cut the February official selling price for its flagship Arab Light crude to Asian buyers for a third consecutive month, reflecting spot market declines due to ample supply, according to a Reuters survey of six Asian refining sources.

Investors are also awaiting US inventory data for the week ended December 19. A broad Reuters poll showed US crude stockpiles are expected to have fallen last week, while distillate and gasoline inventories are likely to have risen.

The report has been delayed from its usual Wednesday release due to the Christmas holiday.

Strong Chinese seaborne crude imports have also helped tighten market conditions elsewhere, according to Giovanni Staunovo, an analyst at UBS. He added that the $60-a-barrel level represents a soft floor for Brent prices, with a modest recovery expected in 2026, as supply growth from outside the OPEC+ alliance may begin to falter by mid-2026.

The Japanese yen recouped some of its losses on Monday after retreating late last week, as markets assessed the timing of further interest rate hikes in Japan and the likelihood of official intervention, while thin year-end trading left European currencies largely stable.

A summary of opinions from Bank of Japan policymakers at their December meeting, published on Monday, showed that members discussed the need to continue raising interest rates. Japanese Finance Minister Satsuki Katayama said last week that Japan has full freedom to act against excessive moves in the yen.

Bart Wakabayashi, head of State Street’s Tokyo branch, said these intervention warnings have helped limit positioning in dollar/yen, although bearish sentiment toward the Japanese currency is evident in other foreign exchange pairs.

“I think holding long yen positions is extremely painful,” Wakabayashi said. “We’re seeing some expression of short yen positions against those currencies, especially against the Australian dollar.”

He added: “The market is still trying to understand the role the yen plays now in terms of being a safe haven.”

The dollar was last down 0.26% at 156.3 yen, after jumping 0.45% on Friday. The yen traded at 105.02 per Australian dollar, just shy of the 17-month low of 105.08 reached on Friday.

The dollar index, which measures the US currency against a basket of peers, edged slightly lower to 97.95. The euro ticked up marginally to $1.1780, while sterling was steady at $1.3503.

The Bank of Japan raised its benchmark interest rate to a 30-year high of 0.75% from 0.5% at its December meeting. The summary of opinions released on Monday showed that many board members saw the need for further rate hikes, with real interest rates still deeply negative once inflation is taken into account.

However, the rate hike failed to stem the yen’s decline, with the currency falling to 157.78 per dollar on December 19, prompting renewed intervention warnings. Japan last intervened to support the yen in July 2024, when it bought the currency after it slid to a 38-year low of 161.96 per dollar.

With limited data this week and thin trading ahead of New Year holidays in many markets, geopolitical developments moved to the forefront.

US President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskyy were “very close, perhaps extremely close” to reaching an agreement to end the war in Ukraine, although both leaders acknowledged that some of the most complex issues remain unresolved.

In Asia, tensions remained elevated as China deployed military units around Taiwan ahead of live-fire drills scheduled for Tuesday. Meanwhile, North Korean state media reported that leader Kim Jong Un oversaw the launch of long-range missiles on Sunday, while South Korea’s Yonhap news agency said further tests could take place around New Year’s Day.

The main data focus this week will be the release of minutes from the Federal Open Market Committee meeting on Tuesday, from a gathering held earlier this month. The US Federal Reserve cut interest rates at that meeting and projected just one additional cut next year, while market participants have priced in at least two more.

Goldman Sachs analysts said in a note: “The FOMC adjusted its post-meeting statement to signal a higher bar for further rate cuts, and Federal Reserve Chair Jerome Powell reinforced this message during his press conference. We expect the December minutes to point to continued disagreement among committee members over the appropriate near-term path of monetary policy.”

The Australian dollar was little changed at $0.6717, while the Swiss franc was firmer at 0.787 per dollar.