Copper Tests $10,000 After Goldman's Warning

Copper prices tested $10,000 a ton after Goldman Sachs warned of increasing supply stress. Copper surpassed $10,000 a ton as investors increased their odds of the U.S. Federal Reserve (Fed) cutting interest rates and Goldman Sachs Groups Inc. warned of increasing supply stress. Copper prices fell to $9,736 after testing 10,000 on the second trading day of the week. Metals joined a broader rally among risk assets after weak U.S. employment data reignited speculation that the Fed will cut interest rates this year. The difficulty world mines have in meeting rising demand and the possibility that the Fed will ease are increasing headwinds for copper. Swap markets in the U.S. raised the probability that the Fed will cut interest rates by the end of the year to 53 percent from 40 percent at the end of April. Goldman, on the other hand, raised its year-end price target to $12,000 from $10,000 per ton. “We continue to predict a shift towards open-ended and increasing metals exposures from 2024,” banking analysts including Nicholas Snowdon wrote in a note.