Metals have joined a broader rally in risk assets after weak US employment data reignited speculation that the Fed will cut interest rates this year.
Copper prices, meanwhile, retreated to 9 thousand 736 dollars after testing the 10 thousand level on the second trading day of the week.
HEADWINDS FOR COPPER...
The difficulty global mines face in meeting rising demand and the possibility of Fed easing are increasing headwinds for copper. In the US, swap markets have raised the probability of a Fed rate cut by the end of the year to 53 percent, up from 40 percent at the end of April.
Goldman has raised its year-end price target from 10 thousand dollars to 12 thousand dollars per ton.
Bank analysts, including Nicholas Snowdon, stated in a published note, "We continue to forecast a transition to open-ended and widening metal deficits from 2024 onwards."
News Source: 12punto
