Copper Prices Plunge: Profit-Booking, Strong Dollar Drive Biggest Fall This Year

• Copper prices experienced their biggest fall this year, with MCX Copper (Jan 2026 expiry) dropping 2% to ₹1330/kg.
• Key reasons for the decline include widespread profit-booking after a recent rally and a strengthening US dollar.
• Market caution ahead of crucial US economic data and uncertainty surrounding the Federal Reserve's future interest rate policy also pressured prices.
• China's central bank (People's Bank of China) indicated potential RRR and policy rate cuts, offering medium-term support for copper demand.
• Despite short-term pressures, long-term fundamentals remain strong due to global demand from power infrastructure, renewable energy, and data centers.

Why It Matters: Copper faces short-term pressure from dollar and profit-booking, but long-term demand remains robust.