Copper Prices: BofA Warns Long Positions Remain at Risk of Selling Halt

CME copper futures fell more than 20% on Thursday after President Trump announced an exemption for refined forms of copper from previously imposed import tariffs.

The sharp decline came after the administration’s policy change on copper tariffs triggered a significant market repositioning. Bank of America noted that trend followers had been rapidly building long positions in CME copper in the weeks leading up to the announcement.

Despite the significant price movement, Bank of America’s analysis of commodity trading advisor (CTA) returns suggests that actual trend followers may have been less active or completely absent from the copper market during the downturn. The bank’s model shows that most trend followers trading copper futures have already stopped their long positions on the CME.

LME copper futures have seen significantly smaller declines over the same period, leaving long positions intact but vulnerable to further market declines. Bank of America warned that these positions remain at risk of being sold off if prices continue to fall.

In contrast to copper’s performance, gold futures rallied after Thursday’s jobs report, helping traders avoid triggering stop-losses. Bank of America said medium- to long-term trend followers are maintaining near-maximum long positions in gold.