On Wednesday, London Metal Exchange (LME) copper prices fell 0.8%, ending the previous streak of strong gains over six straight trading days. Earlier in the session, prices had briefly neared record highs. Meanwhile, LME nickel prices edged down 0.3%, partially unwinding the 1.9% rally recorded on Tuesday, when Indonesia’s Morowali smelting plant cut production due to drought. This technical pullback in commodities was mainly driven by cautious comments on the inflation outlook from multiple Federal Reserve policymakers, including Richmond Fed Chair Bostic. Their remarks suggested that inflation cooling still needs time, and also left open the possibility of further policy tightening. From a macro fundamentals perspective, copper—often seen as a “barometer of the global economy”—after six consecutive days of gains, reaching a historically strong resistance level followed by a modest technical correction is a healthy digestion of profit-taking rather than a trend reversal. Supported by hawkish remarks from officials, the U.S. dollar index strengthened in the short term, which weighed on commodities priced in dollars. However, commodities overall remained at high levels, reflecting that underlying real demand from the physical economy continues to show strong resilience. For traditional financial markets, the brief rebound in U.S. Treasury yields and the dollar mainly reflects the Fed officials’ use of verbal expectation management rather than a fundamental shift. After the sharp rally, industrial metals’ normal pullback did not disrupt the broader pro-cyclical upward channel. For the crypto asset market, commodities holding high and trading in a range, along with the market’s resilience in risk appetite, actually provides solid macro downside support for risk assets. In terms of technicals, $BTC and major cryptocurrencies showed extremely strong downside resistance during repeated battles over expectations for macro liquidity. As long as macro funds do not withdraw on a large scale in a panic, this kind of short-term commodity pullback will help the crypto market build more upside momentum.#Copper #Fed #MacroEconomics