{"id":14842,"date":"2024-08-30T06:46:43","date_gmt":"2024-08-30T06:46:43","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14842"},"modified":"2024-08-30T06:46:43","modified_gmt":"2024-08-30T06:46:43","slug":"copper-prices-edge-higher-on-fed-rate-cut-hopes","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/copper-prices-edge-higher-on-fed-rate-cut-hopes\/","title":{"rendered":"Copper prices edge higher on Fed rate cut hopes"},"content":{"rendered":"\n<p><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Copper prices increased to $4.21 per pound.<\/li>\n\n\n\n<li>Copper is set for its first positive month since May.<\/li>\n\n\n\n<li>Traders eye on the U.S. economic data for further clues on the Fed&#8217;s rate cut plans.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p><strong>This is a follow up article to: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/copper-prices-rise-in-the-face-of-supply-risks-in-chilean-mine\/\">Copper prices rise in the face of supply risks in Chilean mine<\/a><\/strong><\/p>\n\n\n\n<p>Copper prices (Symbol: Copper-C) climbed to $4.21 per pound, marking a crucial recovery and positioning the orange metal for its first monthly gain since May 2024, with a modest 0.5% increase so far in August 2024.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/08\/Copper-C-1024x473.jpeg\" alt=\"copper-c\" class=\"wp-image-14843\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Copper prices edge higher on fed rate cut hopes, as observed on the<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\"> VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>A positive recovery for copper<\/strong><\/h2>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p><strong>Related article: <a href=\"https:\/\/www.vtmarkets.com\/blog\/education\/interest-rate-tug-of-war-for-central-banks-hawkish-vs-dovish\/\">Interest rate tug-of-war for central banks<\/a><\/strong><\/p>\n\n\n\n<p>U.S. economic data released on Thursday showed that the economy grew slightly faster than expected in the second quarter. While this has slightly reduced expectations for a more significant 50 basis-point rate cut by the Federal Reserve, traders are closely monitoring upcoming data releases for further indications.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\u201cTHE TIME HAS COME\u201d for interest rate cuts in the US according to the Fed Chair Powell<br><br>It would not be a surprise if we see a 0.50% reduction in Sept as Powell\u2019s way of framing the comments about the labor market hinted at heightened urgency to act\ud83d\udc47<a href=\"https:\/\/t.co\/dDDepLSrwR\">https:\/\/t.co\/dDDepLSrwR<\/a><\/p>&mdash; Global Markets Investor (@GlobalMktObserv) <a href=\"https:\/\/twitter.com\/GlobalMktObserv\/status\/1829277854606983380?ref_src=twsrc%5Etfw\">August 29, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Despite this positivity, demand concerns, particularly in China, have limited the gains. The country\u2019s ongoing housing crisis continues to dampen overall demand, even as declining copper inventories have led to some buying.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Market outlook in light of the potential rate cuts<\/strong><\/h2>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Traders should keep a close eye on upcoming U.S. economic data, as any surprises could shift expectations around the Fed&#8217;s policy moves and impact <a href=\"https:\/\/www.vtmarkets.com\/tools\/education\/trading-guides\/how-to-trade-copper\/\">the way you trade copper<\/a>. <\/p>\n\n\n\n<p>Additionally, seasonal factors may play a role, with industrial activity typically picking up in September and October, potentially providing further support to copper.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and<\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\"> start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Copper prices (Symbol: Copper-C) climbed to $4.21 per pound, marking a crucial recovery and positioning the orange metal for its first monthly gain since May 2024, with a modest 0.5% increase so far in August 2024. -vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[35,44],"class_list":["post-14842","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-base-metals","tag-commodities"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14842"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14842\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}