Copper Hits 15-Month High as Rate Cut Optimism Grows

Copper jumped to a 15-month high in a broader risk-on rally, as traders prepared for an expected US Federal Reserve rate cut this week and looked for clues on further easing later in the year.

Futures on the London Metal Exchange rose by 1% to $10,173 a ton, the highest since June 2024. Investors expect a quarter-point rate cut this week, following signs of labor market weakness, and money markets are pricing in a high likelihood of two additional cuts by year-end. Lower interest rates tend to support commodities such as copper by boosting demand and weakening the dollar, making them more affordable for buyers using other currencies.