Copper extended gains as traders eyed a more hopeful outlook for interest rates and assessed supply disruption from a fatal mine incident in Chile. The bellwether metal climbed as much as 0.6% on Monday as a fall in oil prices fueled optimism that central banks could pause further rate hikes to rein in energy-led inflation. Higher borrowing costs typically reduce the appeal of non-yielding commodities.
Investors weighed geopolitical risks from escalating hostilities in the Middle East and awaited the mid-week release of US inflation data. In Chile, two workers died on Sunday after a snow avalanche struck Codelco's giant El Teniente copper mine, where open-pit operations had already been halted due to bad weather.
The supply setback comes amid trade dislocations and growing global demand for the industrial metal. Chinese inventories remain low following a weeklong national holiday, while a gauge of import demand reached a four-year high last week, signaling potential restocking by buyers in the world's biggest consumer.
Copper rose 0.5% to $14,618 a ton on the London Metal Exchange as of 11:54 a.m. in Singapore, after gaining almost 2% last week. Aluminum was stable, while zinc was up 0.6%.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing