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.
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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.
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