Copper Prices Firm Amid Ongoing Macro Headwinds

Copper prices edged higher on Tuesday after a sharp selloff in the previous session, despite ongoing macroeconomic headwinds. Benchmark three-month copper on the London Metal Exchange rose 0.34% to $14,461.50 a metric ton.

The gains come as Brent crude hovered above $106 a barrel, extending gains due to concerns over Middle East supply disruptions. Higher oil prices have strengthened inflation concerns and expectations that US interest rates could stay higher for longer.

Traders are also awaiting China's manufacturing purchasing managers data due later this week for further signals on metals demand. Analysts at Chinese broker Galaxy Futures noted that downstream copper users in China have largely completed pre-holiday restocking and are buying only as needed after the recent price decline.