Copper prices remained volatile as traders reacted to the rapid developments in the geopolitical situation in the Middle East.
Changing expectations regarding the impact on the global economy and the demand for the metal could continue to influence market direction.
However, hopes of a diplomatic resolution could help support prices to some extent.
The market could also continue to react to monetary policy expectations. On Friday, copper came under pressure after a stronger-than-anticipated US employment figure reinforced expectations of a more restrictive Federal Reserve amid inflation concerns.
Forecasts of interest rate hikes from major central banks could weigh on copper prices. As a result, attention could be drawn to US inflation figures this week and major central bank interest rate decisions this month, which could fuel some volatility.
At the same time, traders could continue to monitor stock levels and any signs of demand strength, as well as US trade policy decisions. The long-term outlook could remain positive as structural demand from the energy transition, power grid expansion, electric vehicles and artificial intelligence infrastructure continues to grow, while developments around US tariffs could also leave market participants more cautious.
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