Copper Holds Steady as Fed Hike Bets Recede

Copper futures held above $6.15 per pound on Monday, trading in a narrow range for a second straight week as traders scaled back expectations for Federal Reserve interest rate hikes. Softer-than-expected US jobs data released last week reduced the perceived need for tighter monetary policy, while lower oil prices also helped ease inflationary pressures. Industrial metals tend to benefit from a lower interest rate environment, which supports economic activity and strengthens overall demand. Copper also found support as some Chinese funds rotated into metal stocks and futures ahead of expected solid first-half earnings from producers. Several Chinese mining companies are set to release preliminary results in the coming weeks, with this year’s rally across commodities, from gold to copper, expected to boost profits from a year earlier.