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Copper prices edge higher on Fed rate cut hopes

Copper prices (Symbol: Copper-C) climbed, marking a crucial recovery and positioning the orange metal for its first monthly gain, with a modest increase so far. The initial part of August 2024 saw copper prices tumble due to disappointing U.S. jobs data, which stoked fears of an impending recession and triggered a sell-off in global risk assets. However, subsequent economic reports have assuaged these concerns, leading to a recovery in copper prices. The market is now looking forward to the potential for a U.S. interest rate cut in September 2024, which would likely boost industrial demand and provide further support to the metal. Read more to find out how will gold trend.

how will copper trend

Disclaimer:

The modest rise in copper prices is encouraging, particularly with the backdrop of potential Fed rate cuts, which could spur industrial demand. However, the tepid demand from China remains a significant headwind, especially with the ongoing housing crisis weighing on the market. Traders should keep a close eye on upcoming U.S. economic data, as any surprises could shift expectations around the Fed’s policy moves and impact the way you trade copper.

Publication date:

2024-09-03 08:24:12 (GMT)

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