Copper Rises as Fed Signals Loom

Copper futures climbed to around $5.70 per pound on Wednesday, recouping losses from the previous session and tracking a broader rebound in the metals market.

Those moves came even as the dollar strengthened ahead of the latest Federal Reserve policy meeting minutes and a key US inflation report this week, although trading volumes remained subdued as several Asian markets were closed for the Lunar New Year holiday.

However, gains were slightly tempered by rising copper inventories in exchange-monitored warehouses, which climbed to their highest level in roughly 11 months, reinforcing concerns about near-term oversupply.

Analysts cautioned that it may take time for stockpiles to be drawn down, particularly during seasonal holiday periods when physical demand typically slows.

On the supply side, Chilean miner Antofagasta reported a sharp increase in annual core earnings, supported by last year’s record copper prices.