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Prices of nonferrous metals rose on Thursday, fueled by expectations of a potential interest rate cut in the United States, which could weaken the dollar and boost economic growth and metals consumption.
Three-month copper on the London Metal Exchange (LME) edged up 0.2 percent to US$8,986 per metric tonne, while the most-traded September copper contract on the Shanghai Futures Exchange (SHFE) increased by 0.2 percent to 72,260 yuan ($10,095.56) per tonne, according to Absa Bank Zambia’s daily market update.
Oil prices also rebounded, recovering some of the previous day’s losses, amid hopes that a US interest rate cut could stimulate economic activity and fuel demand.
However, concerns over slower global demand limited the gains.
Brent crude futures rose 17 cents, or 0.2 percent, to US$79.93 a barrel, while US West Texas Intermediate crude climbed 23 cents, or 0.3 percent, to US$77.21 per barrel.
Gold prices inched higher after a 1% decline in the previous session, which followed inflation data that dampened hopes for a significant rate cut in September.
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Spot gold rose 0.2 percent to $2,452.83 per ounce, while US gold futures increased by 0.4% to $2,490.20.
Meanwhile, the Zambian Kwacha weakened against major currencies, with the dollar in demand as supply remained tight.
During Wednesday’s trading session, the Kwacha softened against the greenback, with the USD/ZMW interbank rate quoted at K26.125/26.175 before falling to K26.175/26.225 by mid-day.
The near-term outlook suggests a bearish trend for the Kwacha as dollar demand gradually resurfaces.
Elsewhere, South Africa’s rand strengthened on Wednesday following US inflation data, which bolstered expectations of upcoming rate cuts in the world’s largest economy.
The rand traded at 18.0575 against the dollar, gaining 0.2 percent from its previous close.
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