Copper futures hovered around $4.06 per pound on Monday, remaining near two-month lows as concerns over demand and a stronger dollar weighed on prices.
Copper holds near two-month lows
Despite recent stimulus efforts from China, markets remain skeptical about the prospects for a sustained economic recovery, dampening demand expectations in the world’s largest consumer of copper.
Eyes on rates decision
Investors are now turning their attention to China's upcoming Loan Prime Rate decision, with hopes that authorities may introduce additional support measures to stimulate economic growth. Adding to the pressure on copper, the US dollar strengthened after Federal Reserve Chair Jerome Powell signaled that the central bank is not in a hurry to cut interest rates, citing the resilience of the US economy. This dollar rally further contributed to the subdued sentiment in the copper market.
