LONDON- Copper prices rose on Friday after encouraging US inflation data that could support future interest rate cuts, while some traders bought futures after they failed to break below a key support.
Three-month copper on the London Metal Exchange rose 0.9 percent to $9,597 a metric ton. The contract has fallen 4 percent in June and is set for a sixth straight weekly loss.
US Comex copper futures gained 1.1 percent to $4.39 a lb.
“The push and pull of the base metals market right now is almost hypersensitive to the rate-cut outlook,” said WisdomTree commodity strategist Nitesh Shah.
“The ECB and Switzerland have already cut and the question is when will there be enough cooling of inflation for the Fed to make its move. The data we’ve been getting seem to be supportive, so rate cuts could be relatively soon.”
The US Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) index, provided encouraging data on Friday suggesting inflation is cooling.
A resulting weaker dollar index helped support the metals market, making commodities priced in the US currency less expensive for buyers using other currencies.
