Copper prices stay above $4.16 on China stimulus hopes

Copper futures stayed above $4.16 per pound on Wednesday, maintaining their highest levels over three weeks as investors focused on China for potential economic catalysts.

Copper prices stay above $4.16 on China stimulus hopes

There is growing optimism that Beijing will follow through on its recent commitments to increase monetary and fiscal stimulus to boost domestic growth. Additionally, strong demand for copper, spurred by the rapid adoption of electric vehicles and the expansion of renewable energy technologies, continued to support prices. Copper’s resilience was further demonstrated despite a rally in the US dollar and rising Treasury yields, driven by robust US economic data that reduced expectations for additional interest rate cuts by the Federal Reserve.

Copper prices hold steady amid tariff uncertainty

However, market sentiment remained somewhat cautious due to ongoing uncertainty surrounding former President Trump’s tariff plans, which are still clouding the outlook for global trade. This combination of factors has helped copper prices hold steady as investors weigh both the potential for stronger demand and the risks of geopolitical tensions.