Copper Prices Climb as Fed Hike Clears Uncertainty
Copper prices rose on Monday as last week's interest rate hike by the US Federal Reserve removed months-long uncertainty over rates. The benchmark three-month copper price on the London Metal Exchange was up 0.06% at $14,530.5 a metric ton.
The Fed hike had weighed on growth-dependent commodities like copper by dampening growth. However, strong demand in China continued to support prices, with the Yangshan copper gauge finishing last week at $124 a ton, its highest in nearly four years.
Analysts from Chinese broker Everbright Futures said that extreme mine-side tightness and ultra-low Chinese domestic inventories still formed a floor for copper prices. Expectations for inventory replenishment ahead of next week's National Day holiday in China also offered price support.