(Bloomberg) -- Base metals gained — with copper nearing the highest since early August — as Federal Reserve Chair Jerome Powell reinforced bets for an interest-rate cut next month.
“The time has come for policy to adjust,” Powell said Friday in the text of a speech at the Kansas City’s Fed’s annual conference in Jackson Hole, Wyoming. He acknowledged recent progress on inflation, which has resumed moderating in recent months after stalling earlier in the year.
Copper gained as much as 1.6% on the London Metal Exchange. It has recovered since early August, with tentative signs of a rebound in China helping to steady sentiment as traders awaited Powell’s remarks. While his comments provided some clarity for financial markets in the near term, they offered few clues as to how the Fed might proceed after its September gathering.
Copper was up 1.4% at $9,260.50 a ton by 3:50 p.m. local time on the LME. All other industrial metals rose on the bourse, with aluminum gaining 1.9% and zinc climbing 1.5%. Equity markets rallied, while bond yields and the dollar retreated.
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