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Copper Hits Fresh Highs as Fed Cut and Tight Supply Lift Metals

Analysts see a lasting supply gap that could require much higher prices to bring new mines online.

Overview

  • Copper jumped as much as 2.1% to $11,800.50 per tonne in London after the Federal Reserve’s third consecutive rate cut and a brighter U.S. growth outlook.
  • Tight spot–3M spreads and large inventory cancellations in Asia flagged acute physical stress, keeping prices clustered near record territory around $11.6k–$11.8k.
  • Silver set a new record near $64 per ounce and gold hovered around $4,285, extending powerful 2025 gains on looser policy and heavy investor inflows.
  • RBC and others warned that a structural deficit looms, with incentive prices estimated at roughly $12–$15 per kilo to spur sufficient new copper supply.
  • Copper miners’ shares have surged this year, while near‑term risks include weaker Chinese demand signals and possible U.S. tariffs that could jolt prices.