The price of copper rose Thursday to its highest level in nearly six weeks, helped by easing demand concerns after U.S. inflation data turned weaker than expected.
Copper for September delivery rose 1.6% on the New York Comex market, touching $3.70 a pound ($8,140 a ton).
U.S. consumer prices failed to rise in July as economists expected a 0.2% gain, a report that could allow the Federal Reserve to scale back the magnitude of its rate hike. interest in September.
“The market was short according to our estimates in which macro inflation fears were pushing commodity prices lower,” said Zenon Ho, an analyst at brokerage Marex. “Yesterday the US data was surprisingly good and there was some short hedging involved.”
Meanwhile, speculators in the copper market are betting that a global slowdown means the metal used in power and construction has fallen further, despite its recent rebound.
The latest data shows more funds with bearish positions than bullish positions in copper on the London Metal Exchange and COMEX.
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