Copper prices fluctuate as investors worry about Trump's trade policies

The new tariffs imposed by US President Donald Trump and China's harsh retaliatory measures were a source of concern for commodities market participants on Monday. However, despite the initial drop in prices, some metals, such as copper, soon began to recover. A 7% decline in the price of the red metal was replaced by a 3% increase, Bloomberg reports.

According to analysts surveyed by the news agency, the fall in prices resulted from investors trimming their positions in response to heightened trade-related risks. Uncertainty about global demand for metals remains high as President Trump continues his initiatives to change the format of international trade. This will keep metal prices under pressure in the coming weeks, BMI experts say.

On the other hand, the copper supply deficit will provide some support to the metal's price in the near term. This fact contributed to Monday's gains. According to Jin Li Industrial International Pte, the market as a whole is returning to the logic of pricing based on fundamentals.