The copper price hit its highest in a month amid expectations of interest rate cuts by the Fed, which follows the dovish tone of Jerome Powell's remarks at the Jackson Hole economic symposium. It is worth mentioning that copper rebounded at the beginning of this year due to uncertainty over refined copper production in China and due to the extremely positive attitude of speculators in the copper futures market. However, in the May-early August period, the copper price lost more than 20% of its value.
Copper is clearly gaining. It is worth noting that the yuan is clearly strengthening against the US dollar, which should work in copper's favor. Source: xStation5
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Create account Try a demo Download mobile app Download mobile appCurrently, in addition to speculation of an interest rate cut, which could improve the economic outlook in the US and around the world, and further weaken the dollar, there is also talk of a demand recovery. Companies are expected to increase orders to buy copper rod and cable in China in the face of recent sizable price declines. On the other hand, it's worth noting that copper inventories on the Shanghai exchange recently rose to their highest levels since 2020, when prices were below $5,000 per ton. Nevertheless, stocks began to fall after reaching these highs.
Copper stocks were at their highest since 2016 and 2020, but have been rebounding for some time, which may support the recent recovery. Source: Bloomberg Finance LP, XTB
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