by Finimize Newsroom
Finimize
What’s going on here?
Base metals are enjoying a gleam in prices as recent US dollar dips and softer inflation numbers boost their appeal.
What does this mean?
The US Commerce Department’s latest inflation figures suggest a potential easing from the Federal Reserve next year. The Personal Consumption Expenditures (PCE) index inched up just 0.1% in November, marking a yearly rate of 2.4%, against predictions of 2.5%. This cooling inflation pressure could mean a more relaxed Fed stance. Meanwhile, as the US dollar retreats from its peaks, commodities like metals, priced in dollars, become cheaper for international buyers, lifting prices on exchanges. Copper reached $8,977 per metric ton on the London Metal Exchange, and aluminum hit $2,545, buoyed by these economic signals. China’s Shanghai Futures Exchange is seeing similar trends, boosting metals’ global investment appeal.