(Bloomberg) -- Copper climbed after Federal Reserve Chair Jerome Powell said it will probably be appropriate to start lowering interest rates this year, though the central bank is in no rush to do so yet. 

Prices rose more than 1% to $8,590 a ton on the London Metal Exchange, touching the highest since Feb. 23. as Powell on Wednesday pointed to lowering borrowing costs “at some point this year,” but said there’s no rush to do so until policymakers are convinced they have won their battle over inflation.

Elevated interest rates and a stronger dollar have weighed on industrial metals for the past two years. But as the dollar weakened this week, copper edged higher, matching patterns seen in other commodities, including gold. 

The short-term price outlook for the metal will continue to be driven by the Fed’s interest rate path, ING Groep commodity strategist Ewa Manthey said.

“Copper prices will benefit from looser monetary policy, which will alleviate the financial strain on manufacturers and construction companies by reducing borrowing costs,” said Manthey. “But if US rates stay higher for longer, this would lead to a stronger US dollar and weaker investor sentiment, which in turn, would translate to lower copper prices.”

Most other base metals were also higher on the LME, with zinc climbing 1.6% to $2,493 a ton as of 4:47 p.m. local time.

Read More: Zinc Climbs to One-Month High on Lower Stockpiles, Weaker Dollar

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