Copper is getting cheaper in anticipation of a rate increase by the fed

Copper is getting cheaper in anticipation of a rate increase by the fed

That an interest rate increase by the fed in December said it is likely the head of the Department Janet Yellen. According to her, the American economy is “working well”.

MOSCOW, 5 Nov. Copper prices on Thursday show a negative trend on the statements of the head of the U.S. Federal reserve that raising interest rates in December it is likely, according to AFP.

As at 07.42 MSK December futures for copper on the Comex became cheaper by 0.04% to 2.32 per pound (about 0.45 kilograms).

At the end of trading environment, the cost of a ton of copper on the London metal exchange (LME) for delivery in three months rose by 0.18% to 5134 dollars per ton. The price of a ton of aluminum increased by 0,20%, to 1504 of the dollar, zinc — fell by 0.71%, to a mark of $ 1682.

On Wednesday, the head of the Federal reserve system (FRS) the USA Janet Yellen said that an interest rate increase in December, likely, noted that the U.S. economy is now “working well”, the growth of domestic incomes stable.

The fed has repeatedly made clear that maybe in December of this year to raise the policy rate, which currently stands at 0-0,25%. The American Central Bank had to keep interest rates at close to zero, over a number of years due to the slow recovery of the U.S. economy after the credit crisis of 2008. Low rate of the Central Bank stimulates banks to lending to the economy instead of keeping money in Central Bank accounts.

On the other hand the rate increase would have had a lot of support to the American currency and would have a bigger pressure on the price of metals.