LONDON: Copper prices edged up on Friday, buoyed by growing expectations of U.S. interest rate cuts and a slight uptick in physical demand from China. However, investors remained cautious due to underwhelming economic data. By 1015 GMT, three-month copper on the London Metal Exchange had increased by 0.5% to $9,100.50 per metric ton, recovering from a 1.9% drop on Thursday.
“From a macro perspective, it’s a mixed scenario. While the Federal Reserve’s easing stance is favorable, economic data from both the U.S. and China has been rather weak,” noted Amelia Xiao Fu, head of commodity market strategy at Bank of China International.
Some market participants are hopeful that U.S. jobs data, expected later on Friday, will strengthen the case for rate cuts, potentially weakening the dollar. A softer dollar generally supports commodities priced in U.S. dollars, making them cheaper for buyers using other currencies.
Despite recent weak factory data from China, the world’s largest metals consumer, there are signs of renewed physical buying. The Yangshan copper premium hit its highest level in over three months this week, indicating a strong import appetite.
