Copper rises on US inflation data, China stimulus hopes

Copper futures climbed toward $4.4 per pound on Thursday, reaching over two-month highs, as a surprise drop in US core inflation boosted expectations of further interest rate cuts by the Federal Reserve.

Copper rises on US inflation data, China stimulus hopes

Lower rates could boost commodity demand by supporting economic growth and weakening the dollar. Additionally, optimism that China will introduce aggressive fiscal and monetary stimulus to drive consumption further fueled positive sentiment. On the supply side, Chile, the top copper producer, lowered its production outlook due to difficulties finding and developing new deposits.

Traders cautious ahead of Trump's inauguration, fearing tariffs

However, traders remained cautious ahead of US President-elect Donald Trump's inauguration on January 20 amid concerns that new tariffs could disrupt global trade and hurt market sentiment.