Copper Nears Record Highs Amid Improved Market Sentiment

The metals market has resumed its rise in early August, with industrial metals supported by falling inventories and limited supply. Copper prices have moved above $6.6 per pound, approaching record highs, while gold, silver, and platinum have also strengthened.

According to Alpari analyst Anna Bodrova, investor sentiment improved following reports of a possible agreement between the United States and Iran on reopening the Strait of Hormuz. This reduced concerns about a new wave of inflation and weakened expectations of a tighter US Federal Reserve policy.

The probability of a Federal Reserve rate hike in September fell to 57% from 67% a day earlier, amid falling oil prices and improved market sentiment. However, investors are still focused on new US employment data, which could affect expectations for future Federal Reserve decisions.