Copper prices rose to their highest level in almost 6 weeks on Thursday, helped by easing demand concerns following weaker-than-expected U.S. inflation data.
Copper rose 1.6% to $3.70 per pound ($8,140 per ton).
Consumer prices in the U.S. did not rise month-on-month in July compared with the 0.2% increase expected by economists. This could prompt the US Federal Reserve not to go through with the interest rate hikes planned for September.
“The market has been short as per our estimates in which macro fears of inflation were depressing commodities prices,” said Zenon Ho, an analyst at broker Marex.
“Yesterday, U.S. data was surprisingly good and there was a certain element of short-covering involved.”
Meanwhile, speculators in the copper market are betting that the global economic downturn will cause a further decline in the metals used in the energy and construction industries. Despite a recent upswing
The latest data shows that copper is more bearish than bullish on the London Metal Exchange and COMEX.