Copper prices reach two-months high, up 2%

Copper prices have reportedly reached a two-month high, rising two percent to US$9,583 per tonne on the London Metal Exchange as of 0856 GMT.

This surge followed a weakening of the US Dollar after the Federal Reserve’s recent interest rate cut.

According to a Reuters report reviewed by Zambia Monitor, copper prices hit $9,586.5, their highest since July 18, 2024.

The metal now faced resistance from the 100-day moving average at $9,593.

The US Dollar fell as the Federal Reserve commenced its monetary easing cycle with a larger-than-usual half percentage point reduction in interest rates.

This has made dollar-priced metals more attractive to buyers using other currencies.

Dan Smith, head of research at Amalgamated Metal Trading, stated, “There is a lot of debate on how to interpret the size of this rate cut because one can see it in two ways. You can argue that it’s good news.

On the other hand, you can argue that the Fed felt the need to act quickly to support the economy and that this signals that some weakness we are not yet aware of is coming.

For now, the bullish interpretation is winning, but I expect copper to have a volatile session.”

China, a leading metals consumer, continues to send mixed signals for copper, which is used in power and construction.

While the construction sector struggles, demand from the electrical sector is rising.

On the supply side, China’s August refined copper output rose 0.9 percent to 1.1 million tonnes respectively.

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