Copper Prices Surge on Dollar Fall and Expectations of US Interest Rate Cuts
Copper prices hit two-week highs as the dollar fell amid expectations of US interest rate cuts and anticipation of the US presidential election outcome. Benchmark copper on the London Metal Exchange rose 1.1% to $9,679 per metric ton.
Copper Prices Surge on Dollar Fall
Copper prices climbed to two-week highs on Monday as the dollar fell on expectations of interest rate cuts in the US and ahead of the US presidential election. Benchmark copper on the London Metal Exchange (LME) was 1.1% higher at $9,679 a metric ton, up from an earlier session high of $9,723.50 a ton.
US Interest Rate Cut Forecast
The US Federal Reserve is expected to reduce interest rates by 25 basis points at its meeting on Nov. 6-7, with analysts predicting further reductions in the months ahead. This pressure on the US currency makes dollar-priced metals cheaper for buyers holding other currencies, boosting demand.
Market Sentiment and US Election
Traders attributed much of copper's rise to buying by funds that trade on numerical models. Sentiment was positive as the focus shifted to the US election, with polls showing a tight race between Kamala Harris and Donald Trump nationally and in battleground states.
Manufacturing Activity in China
In top consumer China, manufacturing activity rebounded in October, signaling sectoral improvement. Base metals markets are also watching a meeting of China's top leaders from Nov. 4-8 to decide on stimulus measures for growth.