Copper struggled for direction on Thursday as traders reduced exposure ahead of the upcoming Christmas holiday and waited for a U.S. inflation report that could provide clarity on the Federal Reserve’s monetary policy trajectory.
Benchmark three-month copper on the London Metal Exchange was flat at $11,730.50 per metric ton as of 1015 GMT, having traded down as much as 0.6% earlier in the session.
“There’s not really any appetite for fresh positioning at this stage,” said Ole Hansen, head of commodity strategy at Saxo Bank, adding that light profit-taking was taking place ahead of the end of the year. “Books are being reduced. A spike in volatility is always a risk at this time of year.”
Copper has gained almost 34% in 2025 and hit an all-time peak of $11,952 last week.
“The underlying trend still points toward to firm support for this metal as we head into 2026, with the supply side being challenged and demand looking like it will continue to move higher,” Hansen added.
The dollar index nudged up 0.2%, making dollar-denominated metals more expensive for holders of other currencies.
“Risk sentiment is fragile after the latest wobble in U.S. technology shares, keeping traders focused on the next round of inflation data and central bank communication,” Neil Welsh, head of metals at Britannia Global Markets, said in a note.
Aluminium dropped 0.3% to $2,895 per ton, having climbed in the previous two sessions after South32 said it would shut its Mozal smelter in Mozambique in March.
“While the market has partially priced in the risk of Mozal’s closure, formal confirmation would likely add upward pressure to LME aluminium prices and further weigh on an already weak alumina market,” said Edgardo Gelsomino, aluminium research at Wood Mackenzie.
Zinc fell 0.7% to $3,053, lead lost 0.2% to $1,955.50, while nickel gained 1% to $14,525 and tin added 1.3% to $42,825 after earlier touching $43,345, its highest since April 2022.
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