Copper futures settled higher on Monday as investors prepared for this week’s US Federal Reserve meeting with the expectation of a long-awaited interest rate cut. Investors expect a quarter-point rate cut this week following signs of labor market weakness, and money markets are pricing in a high likelihood of 2 additional cuts by year-end. Meanwhile, the weakening US dollar also makes copper more affordable for buyers using other currencies.
Copper futures for December delivery gained $0.0655 to settle at $4.7175 a pound on the Comex metals division of New York Mercantile Exchange. Copper on the London Metal Exchange was up by 1.18 percent at $10,186.50 a ton.