Copper Falls as Hawkish Fed Outweighs Supply Risk; Gold Steadies
- Fed’s Powell says size of September hike hinges on data
- Gold recovers, but heads for fifth straight monthly decline
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Copper headed for the steepest decline in six weeks in New York as a hawkish Federal Reserve crimped the outlook for demand, outweighing supply risks. Gold recovered as the US dollar lost early gains.
Fed Chair Jerome Powell signaled higher-for-longer interest rates to curb inflation at the Fed’s Jackson Hole symposium on Friday, sparking broad declines across financial assets. The worsening sentiment on copper demand took precedence over further signs that supply is under threat, with Chile’s Codelco becoming the latest major producer to cut output guidance.