New York — November 11, 2025 — COMEX copper prices declined last week as investor risk appetite weakened, pressured by tightening U.S. dollar liquidity and ongoing uncertainty surrounding the federal government shutdown.
The dominant macroeconomic theme was the drain in market liquidity following weeks of government closure. The U.S. Treasury’s General Account (TGA) balance rose sharply as the government continued to rebuild cash reserves, tightening financial conditions. At the same time, short-term interest rate indicators — key gauges of dollar liquidity — also climbed, signaling reduced availability of funds in the market.
As a result, liquidity-sensitive assets such as U.S. equities and Bitcoin retreated, and copper prices followed suit.
“The tightening in dollar liquidity is having a clear knock-on effect across risk assets, and industrial metals are feeling the pressure,” one analyst noted.
Market participants remain focused on Washington, where optimism is building that the government could reopen by November 17. However, traders caution that the path remains uncertain, and the economic impact of the shutdown may linger even after federal operations resume.
Until a resolution is reached, analysts expect copper to remain under pressure, reflecting both fragile sentiment and constrained liquidity across global markets.
