Copper Prices Edge Lower on Trade War Worries

Economic

Commodity

Summary:

Copper prices ended lower across major exchanges on Tuesday, as trade war worries and a firmer dollar weighed on broader sentiment, though robust Chinese demand capped losses.

Three-month copper on the London Metal Exchange (LME) was down 0.02% at US$9,882 (RM41,787) per metric tonne, as of 0714 GMT, while the most-traded copper contract on the Shanghai Futures Exchange lost 0.06% to 79,660 yuan (US$11,136.74) a tonne.

Despite concerns that the trade war would weigh on copper consumption, as well as expectations of falling prices after the US refrained from imposing import tariffs on refined metal, copper demand has proven resilient, supported by strong activity in China, said analysts from ANZ on Tuesday.

Analysts from ING noted that the upcoming US jobs report this Friday will be the focus for the market, with expectations of a weakening labour market reinforcing the case for potential rate cuts.

Broadly, a private purchasing managers' index (PMI) survey showed that China's factory activity in August expanded at the quickest pace in five months on rising new orders.

Still, the dollar index, which measures the US currency against six major peers, was last up 0.2% at 97.873.

A firmer dollar makes greenback-denominated assets less affordable to holders of other currencies.

Among other London metals, aluminium climbed 0.23% to US$2,617 a tonne, zinc rose 0.41% to US$2,844, while nickel dipped 0.9% to US$15,300, lead fell 0.67% to US$1,990, and tin eased 0.22% to US$34,875.

SHFE aluminium rose 0.24% to 20,720 yuan, lead edged 0.06% higher to 16,850 yuan, tin strengthened 0.08% to 273,980 yuan, and zinc climbed 0.59% to 22,325 yuan, while nickel lost 0.2% to 122,530 yuan.

Source: Theedgemarkets

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Glendon

Cryptocurrency

Bitcoin wavers below $111,000, caught between macroeconomic uncertainty and unfavorable technical signals. While investors scrutinize upcoming indicators likely to guide US monetary policy, the pressure intensifies. Institutional capital outflows, tensions in derivatives products, and weakened sentiment indicators increase distrust. The market freezes in anticipation, exposed to latent volatility.

In brief

Bitcoin wavers below $111,000, in the midst of macroeconomic uncertainty.
Technical indicators point to increasing downward pressure on the market.
Nearly $390 million in long positions risk liquidation below $107,000.
Bitcoin ETFs record net outflows, a sign of institutional disengagement.

Support at $108,000 tested

Since its sharp drop below $111,000 last Friday, Bitcoin has been oscillating within a narrow range of 2.3 %, signaling a clear slowdown in bullish momentum.

While this inertia coincides with the closure of regulated markets for Labor Day in the United States, it does not mask deeper technical fragility signs.

Indeed, $390 million worth of leveraged long positions could be liquidated if the BTC price falls below $107,000, a level now under close watch. The CoinGlass platform confirms that these positions are particularly vulnerable to a new correction.

Recent technical signals illustrate this increasing pressure on critical support :

The annualized premium of 30-day Bitcoin futures contracts is currently 7 %, a neutral level between 5 % and 10 %, with no improvement since the previous week ;

The Deribit options market shows a 7 % premium on put options compared to calls, typical of sustained bearish sentiment ;

$127 million net outflows were recorded in spot Bitcoin ETFs last Friday, signaling institutional disengagement ;

Bitcoin has decorrelated from gold, which has gained 2.1 % since Friday, reinforcing the idea of a weakening hedge role.

Thus, the absence of bullish momentum, combined with manifest caution in derivatives markets, fuels increased mistrust. If the $108,000 zone breaks, the current market structure could reveal a risk of rapid destabilization, especially as institutional capital seems already to be initiating preventive withdrawal.

Toward a rebalancing in favor of Ether ?

In this climate of nervousness, movements by certain whales further blur the outlook. Indeed, a long-term investor, having held Bitcoin positions for more than five years, has started a major strategic repositioning.

On August 21, this player sold $4 billion in BTC via the decentralized Hyperliquid platform, turning toward Ether (ETH).

Nicolai Sondergaard, analyst at Nansen, specifies that this decision reflects a form of “rotation” of assets, in a context where altcoins, especially ETH, benefit from growing accumulation by corporate actors. This move reinforces the hypothesis of sectoral reallocation within the crypto market itself.

At the same time, exogenous elements amplify distrust around Bitcoin. The yield on 20-year UK government bonds has reached an unprecedented peak since 1998, a sign of lost confidence in fiat currencies and anticipation of inflationary tensions.

While these data mainly concern traditional markets, their knock-on effect cannot be ignored in an increasingly interconnected crypto universe linked to macroeconomic dynamics.

This conjunction of elements creates an unprecedented situation: whales, traditionally guarantors of BTC stability, are shifting toward perceived more promising assets, while technical indicators signal increasing downward pressure. In the short term, markets will be focused on the US employment report due this Friday. Weakening employment could serve as a catalyst for risky assets, reinforcing anticipation of an imminent rate cut by the Fed. However, in the medium term, the gradual shift of capital toward Ether may indicate a structural reshaping of balances within the crypto ecosystem.

Source: CryptoSlate

Risk Warnings and Disclaimers

Add to Favorites

Glendon

Economic

Forex

Euro zone inflation edged higher to 2.1% in August, according to the latest flash data from statistics agency Eurostat on Tuesday.

Economists polled by Reuters had expected the rate to remain unchanged from July, at 2%.

Core inflation, which strips out more volatile food, energy, alcohol and tobacco prices, was unchanged from 2.3% in July.

The closely watched services print meanwhile was slightly lower in August, at 3.1% compared to 3.2% in July.

At 2.1%, the euro zone's latest inflation rate is just slightly higher than the European Central Bank's target of 2%.

The central bank held its key interest rate at 2% in July and is expected to maintain that stance when it next meets in September, according to a majority of economists polled by Reuters.

The EU's trade deal with the U.S., signed in late July, has removed uncertainty over tariffs although there are some concerns that the blanket 15% duty of EU exports to the States could still weigh on economic activity.

The euro zone eked out 0.1% growth in the second quarter, compared to the previous quarter, Eurostat data showed in late July.

Source: CNBC

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Cryptocurrency

Disappointing Market Debut for WLFI

The highly publicized launch of the World Liberty Financial token, branded as WLFI, opened to intense media attention due to its association with President Donald Trump and his family. However, the token quickly fell in value during its first trading session on Monday, casting doubt on the project’s ability to attract sustained investor enthusiasm.

While the Trump brand provided global visibility, the immediate market response suggests that investor appetite was far weaker than anticipated. The decline underscores a gap between political prominence and financial credibility, a dynamic often seen when high-profile endorsements fail to translate into long-term demand for speculative assets.

Investor Sentiment and Market Context

The WLFI launch occurred at a time when global financial markets are already grappling with volatility stemming from trade disputes, legal battles over U.S. tariffs, and eroding confidence in fiat currencies. Gold has surged to fresh record highs above $3,550 per ounce, reflecting a broad shift by investors into traditional safe-haven assets. Against this backdrop, speculative projects like WLFI face steeper hurdles in building confidence.

The token’s decline may also reflect broader skepticism about the utility and governance of politically linked cryptocurrencies. While association with a sitting U.S. president guarantees attention, it also raises regulatory and legal risks that discourage institutional participation.

Outlook for the Project

The early performance of WLFI highlights the challenges facing politically branded digital assets. Without clear use cases, strong infrastructure, or institutional adoption, the token risks being perceived primarily as a vehicle for political signaling rather than as a sustainable investment. The debut serves as a reminder that crypto projects, even with high-profile backers, remain vulnerable to rapid market corrections when investor trust is uncertain.

World Liberty Financial’s underwhelming debut illustrates the limits of brand-driven speculation in crypto markets. Despite the Trump family’s involvement, WLFI’s initial decline points to a market that is increasingly cautious, prioritizing stability and proven utility over political endorsement. The token’s future will depend on whether it can establish credibility beyond the sphere of politics and deliver tangible value to investors.

Source: FT

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

Tariffs Face Judicial Scrutiny but Alternatives Remain

The long-running debate over Trump’s tariff policy entered a new phase after a federal appeals court ruled that much of the administration’s tariff program lacked proper legal justification. While the ruling marked a major legal setback, Treasury Secretary Scott Bessent underscored that other statutory powers, including the Smoot-Hawley Tariff Act, could still be invoked to maintain restrictions. The reference to Smoot-Hawley is significant, as the 1930 law is historically remembered for worsening the Great Depression, raising questions about whether its revival could amplify modern trade tensions.

Markets were closed on Monday for the U.S. Labor Day holiday, leaving investors unable to immediately react to the court decision or Bessent’s comments. Futures remained steady, suggesting market participants have grown accustomed to the volatility surrounding Trump-era trade policies. This muted response may reflect the perception that legal challenges are only one step in what could become a prolonged confrontation.

India and the Tariff Diplomacy Narrative

President Trump added further complexity by declaring that India had offered to remove tariffs on U.S. goods, though he provided no detail. At the same time, he sharply criticized India’s trade policy as “a totally one-sided disaster.” These remarks followed Indian Prime Minister Narendra Modi’s visit to China for the Shanghai Cooperation Organization (SCO) summit, where new alignments and strategic partnerships were emphasized.

The timing suggests a correlation between India’s outreach to China and Trump’s harsher rhetoric on bilateral trade. Whether Trump’s claim of tariff concessions reflects genuine negotiation progress or political posturing remains unclear, but it highlights the interwoven dynamics between U.S. trade policy and Asia’s shifting geopolitical landscape.

The SCO summit underscored Beijing’s push for a more multipolar world order. Key developments included warming India-China relations, visible alignment between Xi Jinping, Vladimir Putin, and Narendra Modi, as well as proposals for AI collaboration and the creation of a new development bank. These initiatives represent more than symbolic gestures; they indicate the consolidation of alternative power structures designed to challenge Western-led institutions.

For Washington, this evolving bloc presents both economic and strategic risks. By tightening ties, SCO members could reduce reliance on Western trade and financial systems, further eroding the influence of U.S. tariffs as a tool of leverage.

Regional Market Responses Highlight Policy Sensitivity

Asian markets traded mixed on Tuesday. South Korea’s Kospi climbed nearly 0.8% as lower-than-expected August inflation provided some relief, while U.S. futures remained flat in the absence of domestic trading. The subdued response suggests investors are waiting for clarity on both the legal trajectory of tariffs and broader macroeconomic indicators due later this week.

Meanwhile, European markets edged higher on Monday, with Germany’s DAX rising 0.6%. This divergence reflects regional differences in how global trade and tariff uncertainty is being priced, with European investors appearing more focused on manufacturing and inflation data.

A Parallel Business Story: Pickleball’s Rise in China

In contrast to the political turbulence, niche markets such as sports are showing remarkable growth. Suzhou Shishan, a Chinese sports club, opened the city’s first pickleball court in 2024, and sales of pickleball equipment have since surged to $1.2 million per month as of July 2025, a sixfold increase year-on-year. Unlike suburban U.S. growth, which is community-driven, China’s urban expansion of pickleball is being led by private operators capitalizing on new commercial opportunities.

The Supreme Court’s upcoming deliberations on Trump’s tariffs mark only the beginning of a drawn-out legal and political contest. Even if the court rules against the administration, Bessent’s insistence on fallback legal authorities ensures tariffs will remain a central feature of U.S. trade strategy. At the same time, shifting alliances highlighted by the SCO summit, coupled with uneven market reactions, point to a world economy caught between judicial processes, political brinkmanship, and emerging global power blocs. Investors remain cautious, aware that the outcomes of these battles will shape trade, markets, and geopolitical stability well beyond 2025.

Source: CNBC

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Blue River

Economic

Forex

The AUDUSD pair declined to 0.6540. Australian statistics remain highly mixed. Find more details in our analysis for 2 September 2025.

AUDUSD forecast: key trading points

● The AUDUSD pair entered a correction after steady gains

● Economic data looks mixed, with investors awaiting signals from the RBA

● AUDUSD forecast for 2 September 2025: 0.6570

Fundamental analysis

On Tuesday, the AUDUSD rate dropped to 0.6540, breaking its five-session winning streak. Investors paused amid conflicting economic signals.

Support for the Aussie came from trade and industry data. The current account deficit in Q2 narrowed to its lowest level in a year. The manufacturing PMI reached nearly a three-year high in August, remaining above the 50-point threshold for the eighth consecutive month.

However, alongside these positives, weak spots stood out. Business inventories posted their smallest increase in the past year. Overall building permits dropped sharply, erasing June’s growth. Meanwhile, private house permits showed only a very modest recovery.

Investors’ focus now shifts to the PMI release, GDP data, and tomorrow’s speech by RBA Governor Michele Bullock. This could provide further guidance on the monetary policy trajectory.

The AUDUSD forecast is moderate.

AUDUSD technical analysis

The AUDUSD H4 chart shows a strong rebound after the decline in the second half of August. Quotes reached the 0.6550-0.6560 area, from where a minor correction is observed. Support forms at 0.6500-0.6520, while resistance is located around 0.6565-0.6570, where local highs are clustered.

Bollinger Bands are expanding upwards, confirming the sustained bullish momentum, although current movement is near the channel’s upper boundary. The Stochastic is in overbought territory, signaling the likelihood of a short-term correction. MACD remains in positive territory, supporting medium-term growth.

In the short term, consolidation within the 0.6500-0.6570 range is likely. To continue the uptrend, the pair needs to secure a breakout above 0.6570, with targets at 0.6600-0.6620. A breakout below 0.6500 could open the way for a correction towards 0.6460-0.6440.

Summary

The AUDUSD pair entered a mild correction after five days of growth. The AUDUSD forecast for today, 2 September 2025, suggests short-term consolidation and a return to 0.6570.

Source: RoboForex

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Commodity

Economic

Historic Gold Rally Reflects Declining Faith in the Dollar

The spot price of gold surged to a record $3,571.50 per ounce on Tuesday, marking a dramatic milestone for the safe-haven asset. This new high surpasses the previous intraday peak of $3,509.90 set in April 2025, continuing a rally that has nearly doubled the metal’s value since early 2023. The renewed momentum comes amid intensifying skepticism toward fiat currencies, particularly the U.S. dollar, following political instability and central bank criticism from President Donald Trump.

According to Stephen Innes of SPI Asset Management, the rally represents more than just price movement it signals a broader erosion in faith toward fiat-based financial systems. This sentiment has been building for years as investors gradually distanced themselves from U.S. Treasuries, but the pace of this shift has accelerated sharply in 2025.

Political Uncertainty and Tariff Backlash Add Pressure

The latest wave of uncertainty stems from a 7-4 ruling by the U.S. Court of Appeals, which challenged the legality of Trump's widespread tariffs imposed under the guise of national emergencies. Although the ruling upheld prior decisions, it delayed immediate rollback, granting the administration time to appeal to the Supreme Court. This legal battle has amplified market anxieties regarding the rule of law in trade policy and the broader reliability of U.S. economic governance.

Investors’ wariness over escalating U.S. government debt, combined with renewed global trade tensions and the shifting geopolitical landscape, has bolstered the case for non-dollar assets. Ipek Ozkardeskaya of Swissquote Bank emphasized that this multifaceted risk environment has led many institutional investors to seek refuge in hard assets such as gold.

Asia’s Diverging Market Response Signals Regional Fragility

Without Wall Street’s lead due to the Labor Day holiday, Asian stock markets displayed mixed reactions. Tokyo’s Nikkei 225 edged up 0.1% to 42,229.39, suggesting cautious bargain-hunting by local investors ahead of a key 10-year JGB auction. In contrast, Chinese markets declined, with the Hang Seng down 0.6% and the Shanghai Composite slipping 0.8%, as investors pulled back from recent rallies.

These declines came amid the Tianjin Summit of the Shanghai Cooperation Organization, which featured leaders from Russia and North Korea and emphasized strengthening ties. The gathering is widely viewed as a geopolitical counterweight to the West, with Mizuho Bank’s Ong Ju Hong suggesting it sets China and its allies on a confrontational trajectory with Trump-era U.S. policies.

Meanwhile, South Korea’s Kospi rose 0.9% to 3,170.18, and India’s Sensex added 0.4%, highlighting regional discrepancies in investor sentiment. Australia’s ASX 200 lost 0.3%, while Thailand’s SET index rose 0.7%, reflecting local economic resilience.

Commodity and Currency Markets Signal Volatility Ahead

Oil markets remained relatively stable, with U.S. benchmark crude rising to $64.90 per barrel and Brent crude increasing to $68.41. These modest gains reflect ongoing uncertainty around global demand and supply chain dynamics amid heightened geopolitical activity.

Currency markets mirrored broader risk aversion. The U.S. dollar appreciated against the yen, reaching 147.75 from 147.18, while the euro declined slightly to $1.1693. The dollar’s strength despite weakening institutional trust may reflect a temporary haven status amid global trade instability and uneven equity performances.

Data Releases in Focus as Market Looks for Clarity

Traders are now turning their attention to a series of key economic indicators due later in the week. In the U.S., upcoming data on durable goods orders, jobless claims, and manufacturing performance are expected to shed light on the economy’s resilience under the weight of trade disruptions and fiscal uncertainty.

In Europe, investors await preliminary inflation data and manufacturing output reports, which will help clarify whether the eurozone’s economy can maintain stability amid the twin forces of energy volatility and sluggish consumer confidence.

The record-breaking surge in gold prices underscores growing anxiety over the credibility of fiat currencies and long-term economic governance in the U.S., especially in light of trade policy unpredictability. Simultaneously, Asia’s mixed market responses reflect a fragmented regional outlook shaped by localized risks, geopolitical realignment, and divergent policy responses. With investors flocking to gold and sidestepping traditional safe assets like Treasuries, the global financial narrative is increasingly defined by distrust, volatility, and the search for tangible security.