Copper price hits two-month high after Fed rate cut

Copper price rose on Thursday to its highest level since mid-July after the Federal Reserve announced an interest cut of half a percentage point to stimulate the US economy and the labor market.Copper for delivery in October rose 2% from Wednesday’s settlement, touching $3.38 per pound ($9,636 per tonne) Thursday morning on the Comex market in New York. Click here for an interactive chart of copper pricesThe half-point cut unveiled by Fed Chair Jerome Powell is “beneficial to expectations for a soft landing in the US,” Everbright Futures Co. said in a note, adding that fundamentals for copper were gradually improving.While most metals have posted solid gains this year, their performance has fallen short of the bullish forecasts many expected — particularly for copper. Weak demand from China has been a major disappointment, and ongoing uncertainty surrounding the upcoming US presidential elections has further dampened sentiment.“The increase in the medium-term outlook for rates should come as a positive, with metals highly sensitive to factory activity and overall economic growth,” ANZ Group Holdings said in a note.Earlier this week, analysts at Bank of America (BofA) projected copper price to rise above $10,000 per tonne by 2025.The copper price remains strong due to high demand, constrained supply and increased investment in energy transition projects, BofA said.“Manufacturing activity should stabilize as the Fed cuts rates, so we maintain our constructive copper view into 2025,” the analysts said.Read more: BHP warns AI boom would worsen copper shortage(With files from Bloomberg)Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com