Fed Expectations Push Copper to Highest Level Since 2024
Global optimism drives copper to its highest level since June 2024 as traders bet big on Fed rate cuts and resilient Chinese demand.

Copper has stormed to a 15-month high, marking a decisive turn in the commodities market as traders pile in on expectations that the US Federal Reserve is preparing to ease monetary policy. Futures on the London Metal Exchange climbed 1 percent to $10,173 a ton, their highest level since June 2024. The surge is driven by an almost feverish optimism that interest rates are heading lower, and soon. For six straight sessions, copper has rallied, riding a wave of weak US economic data, a softer dollar, and increasingly dovish commentary from central bank officials.
The metal, often described as a bellwether for the global economy, is flashing a signal that demand is stirring just as policymakers are preparing to stimulate growth. Equities have resumed their record-breaking trajectory, Treasury yields are sliding, and the dollar is losing strength—all creating fertile ground for copper to soar.
Fed’s Move in Focus
At the heart of the rally lies the Federal Reserve. Markets are pricing in a quarter-point cut this week, with growing conviction that at least two more will follow by year’s end. Investors are parsing every hint from policymakers and every soft print in the labor market, looking for confirmation that the central bank is ready to loosen the screws. Lower borrowing costs not only stoke demand across industries, they also weaken the dollar, making dollar-denominated commodities cheaper for buyers across Asia, Europe, and beyond.
In many ways, copper’s move is a barometer of belief. Traders are betting that the cycle of tightening is over and that growth, though fragile, will be supported by easier credit and a friendlier investment climate. The question is whether demand will hold up long enough to justify the price surge, or whether this is simply a speculative rush ahead of the Fed’s decision.
