Copper prices on the London Metal Exchange (LME) increased today, driven by strong demand and ongoing supply-side issues. According to the ANZ research team, investments in electricity-driven cooling and increased spending on grid infrastructure have boosted demand.
Production at Anglo-American’s Los Bronces copper mine in Chile, the world’s top producer, is expected to fall by around 30% due to plant maintenance. Additional production declines at other Latin American mines have worsened concentrate shortages, with disruptions in Peru, Panama, and Zambia further driving prices up.
However, rising protectionism, such as the European Union’s plans for tariffs on Chinese-made electric vehicles, could weigh on copper prices, according to Kedia Advisory. As of 0747 IST, the three-month copper contract on LME was at $9,545.0 per ton, up 0.4% from the previous close.
Gold prices fell on the COMEX today as hopes for interest rate cuts by the US Federal Reserve diminished. Fed Governor Lisa Cook indicated that a rate cut would be appropriate at some point, but the timing is uncertain, while Fed Governor Bowman does not expect any cuts this year. Higher interest rates typically make non-interest-yielding bullion less attractive to investors.
However, softening US labor market data has renewed hopes for potential rate cuts. The US Labor Department reported that initial jobless claims decreased by 6,000 to 233,000 for the week ending Saturday. Additionally, escalating geopolitical tensions could boost safe-haven demand for gold.
Investors are now awaiting the US personal consumption expenditure price index data, due later today. This inflation gauge is likely to influence the Federal Reserve’s rate outlook. As of 0732 IST, the August gold contract on COMEX was at $2,332.10 per ounce, down 0.2% from the previous close. 
