Copper Rises as Rate-Hike Expectations Ease

Copper futures climbed toward $6.2 per pound on Friday and were on track for a weekly gain as traders scaled back bets for Federal Reserve interest rate hikes following softer-than-expected US employment data. The US economy added far fewer jobs in June than forecast, leading markets to price in only about a 50% chance of a Fed rate increase in September, down from roughly 67% before the report. Industrial metals had faced pressure in recent weeks as Federal Reserve officials signaled a greater willingness to tighten monetary policy, weighing on the outlook for metals demand. Easing supply risks as commercial traffic though the crucial Strait of Hormuz improved also weighed on prices.

Copper decreased 2% to 6.0686 USD/Lbs

Copper futures fell to around $6.1 per pound, giving back recent gains as investors awaited a US Commerce Department report on the copper market that could pave the way for import tariffs on refined copper. The metal also came under pressure from expectations that the US Federal Reserve will raise interest rates as soon as September, weighing on the demand outlook for industrial metals. Additionally, improving commercial traffic in the Strait of Hormuz amid progress in US-Iran peace efforts reduced supply risks for copper. Meanwhile, Goldman Sachs said the conflict involving Iran could ultimately support metals demand, citing stronger electric vehicle adoption, increased investment in renewable energy, higher defense spending and intensifying competition in artificial intelligence as key drivers of long-term copper consumption.