Global copper prices near their highest levels in two weeks

Copper futures rose above $4.5 an ounce on Thursday after jumping more than 2% in the previous session, hovering near two-week highs, as weak US economic data reinforced bets that the Federal Reserve could start cutting interest rates as soon as September.

According to Reuters, Federal Reserve Chairman Jerome Powell also said this week that recent data indicates a shift to a deflationary trend, although they need more confidence in inflation expectations before easing policy.

Lower US interest rates may boost global economic growth and aggregate demand, supporting commodity prices.

In addition, data from the Shanghai Futures Exchange also showed that copper stocks in China decreased for the third week in a row after recording sharp increases since the beginning of 2024.

Meanwhile, copper stocks in warehouses monitored by the London Metal Exchange rose to 186,450 tons, the highest level since October 2023.