Copper Gains in Broad Metals Rebound
Copper futures climbed to around $6.45 per pound on Thursday, marking a third consecutive session of gains as the broader metals complex rebounded following a widely anticipated interest rate hike by the US Federal Reserve. However, investors remained cautious after the Fed signaled that additional rate increases could be necessary as policymakers work to curb ...
Copper prices surged to approximately $6.45 per pound on Thursday, marking the third consecutive day of gains. This upward trend followed the US Federal Reserve's anticipated interest rate hike, which had previously caused metals to rebound. However, investors displayed caution as the Fed hinted at the possibility of further rate hikes to tackle persistent inflation, a factor that could negatively impact non-yielding metals like copper.
The precious metal also benefited from long-term demand forecasts linked to data centers and renewable energy sectors, coupled with supply constraints at significant mining operations. Earlier in the week, copper experienced a drop to multi-week lows due to media reports suggesting the Trump administration had postponed a decision on imposing tariffs on refined metal.
In addition, warehouses tracked by the London Metal Exchange received fresh copper shipments and recorded their largest inflows in nearly four weeks. This surge in supplies led to London prices entering contango, a market condition where future prices exceed the spot price, suggesting abundant near-term availability.
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