Copper prices witnessed a sharp decline on Friday, extending losses amid a broad-based sell-off across the metals complex. MCX copper futures fell nearly 6%, dropping to around Rs 1,330 per kg, as traders aggressively cut positions following heightened volatility in global commodity markets.
The sharp fall in copper mirrors weakness across both precious and base metals, driven largely by profit booking after recent rallies and a sudden shift in global risk sentiment. Expectations of tighter monetary conditions, a stronger US dollar, and rising bond yields have weighed heavily on metals, with copper—often seen as a barometer of global economic growth—bearing the brunt of the move.
Market participants also pointed to spillover pressure from global copper prices, which retreated sharply after hitting multi-decade highs earlier this week. As leverage unwound across commodity trades, selling intensified, pushing prices sharply lower during the session.
With volatility elevated, analysts note that copper prices are currently reacting more to macroeconomic cues and cross-asset flows than to immediate supply-demand fundamentals. Any further moves are likely to remain sensitive to global monetary policy expectations and currency trends.
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