Copper Prices Surge Amid Chile Disruptions, Trump Tariff Threats

In the global commodities market, gold prices stabilized in Asian trading on Wednesday, pausing after recent record highs but maintaining strong safe-haven appeal amidst uncertainty surrounding U.S. trade policies and economic slowdown concerns.

Meanwhile, copper prices saw significant gains driven by disruptions in Chile, the world's leading copper producer. A widespread power outage in Chile's mining-rich north, attributed to a transmission failure, has forced major copper mines like Escondida to halt operations. The situation, declared a state of emergency in Santiago, threatens to severely impact global copper supplies if prolonged.

Despite U.S. President Donald Trump's threats to impose tariffs on copper imports aimed at boosting domestic production and countering China's dominance in the market, copper futures on the London Metal Exchange climbed 0.8% to $9,486.05 per ton. March copper futures also rose 0.9% to $4.7408 per pound.

The softer dollar further supported metal prices, as weaker-than-expected U.S. economic data heightened expectations of additional interest rate cuts by the Federal Reserve. Spot gold steadied at $2,916.06 per ounce, while gold futures for April delivery edged up 0.4% to $2,929.74 per ounce, after hitting a record high earlier this month.

Looking ahead, market focus remains on forthcoming U.S. economic indicators, including fourth-quarter GDP data and the PCE price index, crucial for the Fed's inflation outlook. These releases are anticipated later in the week, with analysts closely monitoring their impact on metal markets amidst ongoing global economic uncertainties.