Copper Prices Soar Amid Economic Indicators, Fed Hike Fears Ease

Copper Price Rally Driven by Economic Indicators and Mining Disruptions

Copper prices have climbed toward $6.80 per pound on Tuesday, about 2% below its September record. Easing fears of another US rate hike and fresh mining disruptions in Chile are driving the move. On the London Metal Exchange, copper price rose 0.5% to about $6.63 per pound. That puts prices roughly 17% higher than at the start of 2026, showing how sharply the metal has gained this year.

Fed Hike Fears Ease as Rate Odds Shift

The Federal Reserve (Fed) raised rates by 25 basis points in September, its first hike since 2023. The decision lifted the target range to 3.75%–4.00%. Traders now see a smaller chance of another increase this month. FedWatch data shows an 80.6% probability that the Fed holds rates at its October 28 meeting. A pause would ease pressure on industrial metals, which tend to struggle when borrowing costs rise.

Copper Demand on the Rise

Copper demand is expected to jump 50% by 2040, making it a critical metal for humanity. Ivan Bebek, CEO of Coppernico Metals, said copper demand could jump 50% by 2040. Copper is about to become the most important metal for humanity. Demand is expected to jump 50% by 2040 & the world isn't ready.

Copper Price Forecast

Copper's recent price movements suggest the rally could continue, with $7 per pound emerging as the next major target. Since late June, copper has repeatedly bounced back whenever prices have fallen toward a rising support line. Its average price over the past 100 trading days has also helped prevent deeper declines. Both indicators now point to $6.55 as an important level where buyers could step in again.

What Could Send Copper Prices Lower?

Despite the positive trend, there are signs that the rally may be losing strength. Copper's Relative Strength Index (RSI), which measures buying and selling momentum, is around 55. This suggests buyers still have an advantage, although momentum has weakened since August. The chart also shows copper trading within a narrowing upward range. Such patterns can sometimes signal an approaching price correction. If prices fall, $6.55 is the first major support level to watch.

US Inflation Figures to Watch

The next major test comes on Wednesday, October 14, when the US releases its latest inflation figures. Higher-than-expected inflation could increase pressure on the Federal Reserve to raise interest rates, potentially hurting copper prices. Softer inflation could ease those fears and help copper challenge its previous record.