Copper Prices Surge on Tight Inventories and Weaker Dollar

Copper prices rose on Thursday as concerns over tight inventories and supply disruptions took hold. The London Metal Exchange's three-month copper price hit $13,767 per metric ton, a 1.4% gain from the previous day.

The dollar index fell 0.1%, reaching its lowest point in a week after the Federal Reserve kept interest rates steady. A weaker dollar makes greenback-denominated commodities more affordable for buyers using other currencies.

Natalie Scott-Gray, an analyst at StoneX, noted that the market is shifting from being driven by macro sentiment to physical tightness due to weather-related disruptions and dwindling stocks on exchanges such as the LME and Shanghai Futures Exchange.