U.S. Copper futures rose on Thursday along with other metals, oil and equity markets, on the 0.75 percent cut in interest rates this week
Metals recovered on Thursday after Federal Reserve's reduced interest rates to 3.5 percent this week. Copper gained 12.90 cents or 4.2 percent to $3.2010 a pound on the Comex division of the New York Mercantile Exchange.
Moreover, China which is the largest consumer of copper has shown economic progress, boosting demand in metals. China's gross domestic product (GDP) grew 11.2 percent in the fourth quarter according to the statistics bureau's report in Beijing. Fed's cut had a positive effect on commodities and may have calmed the nerves of investors, but the fears of an economic recession in the U.S. have not vanished. A slowdown in economy could imply less growth in the construction section where copper is required the most.
Traders predict an extra reduction of 0.50 percent on interest rates by January 29 when the Federal Reserve will hold another meeting.
Copper stock supplies in the London Metal Exchange fell by 1,875 metric tons to 174,300 metric tons today and Comex warehouses inventories decreased 14,056 tons compared to Wednesday.
Oil, Gold, Nickel, aluminum, zinc and tin gained on the market today.