Copper prices are showing a decline after a period of growth. The metal market is experiencing a decrease in value due to changing expectations regarding monetary policy in the U.S., which is affecting demand forecasts.
This is reported by Finway
Impact of U.S. Federal Reserve Decisions on the Metal Market
During the last meeting of the U.S. Federal Reserve, policymakers expressed caution regarding further interest rate cuts. Some Fed members even suggested the possibility of rate increases. Meanwhile, President Donald Trump continues to insist on the need for rate cuts to stimulate the economy.
“Bloomberg reports that policymakers unexpectedly approached rate cuts with caution, and some even suggested that increases might be necessary. In turn, President Donald Trump continues to call for rate reductions.”
Price Dynamics of Copper and Other Metals
After a two-month period of growth driven by speculative buying, copper has entered a consolidation phase. Economic indicators in the U.S. point to accelerated economic growth, a decrease in inflation rates, and stabilization in the labor market. Against this backdrop, the price of copper on the London Metal Exchange has dropped to $12,870.50 per ton as of 4:36 Kyiv time, which is equivalent to $12.87 per kilogram.
Alongside copper, the exchange also recorded a 0.3% decrease in aluminum prices. At the same time, nickel increased by 1%, while iron ore fell in price by 0.4%, costing $95.35 per ton.