Prices of copper and other industrial metals extended their rebound on Thursday on hopes for less aggressive increases to interest rates by the US Federal Reserve and other central banks.
Copper for delivery in March rose on the Comex market in New York, touching $4.10 per pound ($9,020 per tonne), up 1.7% compared to Wednesday’s closing.
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Copper had earlier joined oil and equities in a wider upswing on financial markets after investors viewed Tuesday’s comments by Fed Chair Jerome Powell as dovish, focusing on his expectations of slowing inflation.
On Wednesday, New York Federal Reserve President John Williams said that monetary policy will need to be restrictive of growth for a few years.
“The markets are moving on every indication of softening or tightening from the central banks,” said WisdomTree commodity strategist Nitesh Shah.
“After the Fed rate hike last week, there was a lot of hawkish commentaries, but yesterday it was slightly more dovish and that’s giving the markets more confidence.”
(With files from Reuters)