Copper futures rose toward $4.4 per pound on Thursday, hovering at over two-month highs as a surprise decline in US core inflation supported bets on further interest rate cuts from the Federal Reserve this year. Lower US rates could stimulate demand for commodities by supporting economic growth and weakening the dollar. Additionally, hopes that China will implement aggressive economic support measures, including fiscal and monetary stimulus, to boost consumption further fueled bullish sentiment. On the supply side, top copper producer Chile lowered its production forecasts for the coming years, citing challenges in finding and developing new deposits. However, traders remained cautious ahead of US President-elect Donald Trump's inauguration on January 20, amid concerns that potential new tariffs could disrupt global trade and dampen market sentiment.
You are viewing a single comment's thread from: