Copper Prices are still down as we wait for news from Jerome Powell and the FED next week!
Copper is still sitting in this $3.80 cent range, which is unusual considering most of this year and last year we have seen it in the $4 and above range.
One big factor in the short term that could really affect copper and other metal prices is the upcoming Federal Reserve rate hike decision.
If we see a rate hike above the excepted .25 number then this will most likely be bad news for metals. And if we see .25 or below this could be a positive sign for metals.
Sometimes the truth comes out when you don’t really know who you’re talking to, as jerome powell found out as he got pranked by two Russian interviewers.
He thought he was speaking to President Zelensky and at the time he told them there are definitely two rate hikes coming, the second of which would be coming next Wednesday, and then he said after this we will wait to evaluate the impact on the economy.
That news would mean that this would be the last of the rate hikes, but the next question would be how long are we going to be staying at this elevated level.
Our team will be shutting down Wednesday at 2:30 to listen to his press conference to get an indication of any hint of how long the rates will stay this high.
The market is expecting him to do rate cuts at the end of this year but with this economy that seems a little hard to believe right now.
Enjoy your weekend and get pumped up for fed week next week. We will be watching because Metals will move on this news!