HANOI- Copper prices in London rose nearly 1 percent on Tuesday to their highest levels in nearly six weeks, supported by optimism over a potential US interest rate cut in September that could help lift demand for the red metal.
Three-month copper on the London Metal Exchange (LME) was up 0.8 percent at $9,365 per metric ton. Earlier in the session, copper increased as much as 1 percent to $9,385.50 a ton, the highest since July 19.
The most-traded October copper contract on the Shanghai Futures Exchange (SHFE) climbed 0.9 percent to 75,020 yuan ($10,526.91) a ton, hovering near a three-week high hit in the previous session.
“The rise in copper of late can be attributed to the macro environment. Demand is still lagging behind, but the onshore macro players are looking further beyond,” a trader said.
Market participants have been expecting an interest rate cut by the Federal Reserve next month, and the hope was reinforced by Fed Chair Jerome Powell’s comments at a key conference last week.
A rate cut tends to boost economic growth and demand for metals, as well as pressure the dollar, which will eventually makes greenback-priced metals cheaper for holders of other currencies.
