September Comex copper contracts hit multi-month highs as physical market tightness outweighs Fed rate decision relief.
Copper futures jumped as much as 3% Thursday, nearing June’s record levels, driven by signs of tightening physical supply. September Comex copper contracts (HG1:COM) climbed to their highest point in months, reflecting growing concerns over constrained global inventories.
The rally follows recent data showing dwindling warehouse stocks and strong industrial demand, particularly from China. Analysts had anticipated a modest uptick, but the 3% gain exceeded expectations, underscoring the market’s sensitivity to supply risks. The Federal Reserve’s decision to hold rates steady provided additional support, easing pressure on dollar-denominated commodities.
Traders are closely monitoring inventory reports and manufacturing activity for further signals of demand strength. The metal’s performance contrasts with broader base metal trends, highlighting copper’s unique supply-demand dynamics.