Copper prices extended their rally, building on a nearly 3% jump from Friday. Continued dollar weakness provided a tailwind for base metals, lifting the entire complex. The greenback's decline makes dollar-denominated commodities cheaper for holders of other currencies, boosting demand and speculative interest.

This move reflects broader market dynamics where Federal Reserve policy expectations heavily influence currency and commodity markets. Traders are betting on interest rate cuts, weakening the dollar and lifting asset prices. For mining companies like Freeport-McMoRan, higher copper prices directly improve revenue forecasts and project economics.

The rally's sustainability hinges on upcoming U.S. economic data and the Fed's guidance. A stronger-than-expected jobs report could reverse dollar weakness, pressuring metals. Investors will watch for signs of sustained demand from China, the world's largest copper consumer, to confirm this isn't just a currency play.