After hitting record highs, copper prices have started giving back gains as traders reassess the tariff outlook and digest a strengthening US dollar. The retreat highlights a classic market dynamic—when risk appetite cools and the greenback rises, commodity prices often struggle.

Here's what's moving the needle: tariff concerns, which had fueled commodity bull runs, are easing as negotiations appear less confrontational than feared. Meanwhile, a stronger dollar makes commodities priced in USD less attractive for overseas buyers, adding downward pressure.

For market participants, this matters more than it looks. Copper's performance often telegraphs broader economic sentiment—when it weakens, it typically signals either slowing growth expectations or flight-to-safety positioning. The current pullback suggests investors are recalibrating near-term outlooks.

The interplay between currency strength, commodity weakness, and policy uncertainty creates trading opportunities for those watching the macro picture closely. Whether this is a temporary correction or a signal of shifting momentum will be worth monitoring in coming weeks.