Copper prices rose on Friday, driven by investor optimism over the potential for U.S. interest rate cuts next year following slower consumer inflation in the U.S. However, the possibility of an artificial intelligence bubble tempered some of the gains. On the Shanghai Futures Exchange, the most-active copper contract closed 0.46% higher at 93,180 yuan per metric ton but ended the week 1.07% lower, after reaching a record high of 94,030 yuan last week.
The three-month copper contract on the London Metal Exchange increased by 0.29%, settling at $11,812 per ton, marking a 2.53% rise for the week. U.S. consumer price data, which showed slower inflation than expected for the year ending in November, bolstered expectations of rate cuts. However, the Federal Reserve’s cautious stance on further cuts and ongoing uncertainty due to the recent government shutdown kept markets on edge.
In other base metals, nickel surged by 3.17% on the Shanghai exchange, and 1.36% on the London exchange, supported by production cuts in Indonesia. Aluminium, zinc, lead, and tin also saw gains across both exchanges.
