The price of copper continues to go down today. The reason is not directly related to the market for this metal, but is due to fears of a global recession, in connection with the “hawkish” policy of central banks to raise refinancing rates. This is shown by trade data and analysts’ comments, Reuters reports.
This morning, copper futures for July on the Comex exchange fell 0.56% from the previous day to $ 3.99 per pound (about 0.45 kilograms).
On the London Metal Exchange (LME), according to the results of the previous trading session, the price of one ton of copper with delivery after three months fell by 1.25% to 8961.5 dollars, the price of aluminum fell by 0.26% to 2498 dollars / t, and zinc – by 1.51%, to 3523.5 dollars / t.
“Prices for basic commodities such as copper and aluminum are falling due to fears that the aggressive rise in key interest rates by the US Federal Reserve and other central banks could lead to a recession in the global economy,” Reuters reported.
For example, the US Fed raised key interest rates by 75 basis points to 1.5-1.75%. Regulators around the world are “tightening” monetary policy in the fight against high inflation, but commodity markets fear negative consequences, which specifically mean for them a reduction in liquidity inflows.
Why copper is cheaper
Aluminum and zinc futures are also falling
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