Copper prices rose on Friday, supported by signs of improving demand from China, the world’s largest consumer of metals, as buyers there sought to boost inventories ahead of a long national holiday.

Three-month benchmark copper on the London Metal Exchange (LME) gained 0.4% to $9,982 per metric ton in official open trading.

Even so, the metal remains down 2% from Monday’s peak of $10,192.50 — its highest level in 15 months — after traders took profits following the US Federal Reserve’s decision to cut interest rates on Wednesday.

The Yangshan copper premium — which reflects demand for imported copper into China — jumped 1.8% to $57 a ton on Friday.

Chinese consumers typically purchase copper for restocking ahead of the national holiday running from October 1 to 8, a period that often brings a slowdown in economic activity.

Citi, in a research note, projected copper prices to range between $9,500 and $10,500 a ton in the fourth quarter before climbing to $12,000 in 2026, helped by a weaker dollar at a time when rising metal output won’t be enough to offset growing demand.

The bank also forecast refined copper consumption to rise by 2.9% next year to 27.5 million tons, pushing the global market from a surplus of 63,000 tons this year into a deficit of 308,000 tons.

Other LME metals:

Aluminum was steady at $2,683.5 a ton. It had touched a six-month high of $2,720 on Tuesday, when the cash-to-three-month spread widened to $16 a ton, the highest since March, before narrowing back to $4. Citi noted that aluminum’s underlying market conditions remain “globally balanced,” forecasting an average Q4 price of around $2,650.

Zinc fell 0.7% to $2,896 a ton. While LME-registered inventories have dropped in recent months — signaling tightness in the galvanized steel feedstock — industry sources said spot supply remains ample.

Lead rose 0.1% to $2,008 a ton.

Tin inched up 0.1% to $33,750.

Nickel advanced 0.3% to $15,320.

Bitcoin slipped slightly on Friday after the recent rally fueled by optimism over US interest rate cuts ran out of steam, while markets were also affected by relatively hawkish signals from the Bank of Japan.

Cryptocurrencies more broadly also retreated after recovering part of their late-August losses earlier this week, with caution toward the sector persisting.

Bitcoin fell 0.3% to $116,879.6 by 01:43 AM Eastern Time (05:43 GMT). Despite the modest dip, the world’s largest cryptocurrency was still on track for a 0.9% weekly gain.

Large-scale treasury purchases—led by MicroStrategy Incorporated (NASDAQ:MSTR)—failed to support prices this week. Similarly, the US Securities and Exchange Commission’s (SEC) announcement of easier rules for listing crypto-linked exchange-traded products did little to boost the market.

Bitcoin stalls as post-Fed gains fade and BOJ strikes a hawkish tone

Bitcoin had clawed back some of its late-August losses during the first two weeks of September, helped by dip-buying and optimism over an expected Federal Reserve rate cut this week.

But the momentum faded in recent sessions amid rising caution about corporate treasury strategies for crypto investment, with analysts warning of risks to long-term gains from this approach.

Enthusiasm over Fed rate cuts also cooled after the central bank rejected calls for deeper reductions, stressing caution due to persistent inflation pressures. Signs of a weakening US labor market added further uncertainty about the economy’s resilience.

The Bank of Japan emerged as another source of caution Friday after announcing plans to begin selling its large holdings of exchange-traded funds (ETFs) and Japanese real estate investment trusts (J-REITs).

Although the BOJ kept rates unchanged as expected, the planned asset sales were viewed as hawkish, signaling further tightening in monetary policy. The announcement also kept expectations of an October rate hike firmly in play.

The bank additionally flagged ongoing concerns about the world’s fifth-largest economy.

Cryptocurrency prices today: Limited altcoin moves in a lackluster week

Other cryptos saw little movement Friday and looked set for a subdued weekly performance.

Ethereum, the world’s second-largest crypto, fell 0.8% to $4,532.68 and was mostly flat for the week.

Ripple dropped 1% to $3.0404, down about 2% this week.

Binance Coin (BNB) hovered around $992.90 after topping $1,000 on Thursday, with weekly gains of more than 6%.

Oil prices fell on Friday as concerns over fuel demand outweighed expectations that the US Federal Reserve’s first interest rate cut of the year could spur greater consumption.

Brent crude futures dropped 41 cents, or 0.6%, to $67.03 a barrel by 08:55 GMT, while US West Texas Intermediate (WTI) crude fell 54 cents, or 0.9%, to $63.03.

Despite the decline, both benchmarks remained on track for a second consecutive week of gains.

The Fed cut its benchmark interest rate by a quarter percentage point on Wednesday and signaled further reductions ahead in response to signs of weakness in the labor market. Lower borrowing costs typically boost oil demand and support higher prices.

Priyanka Sachdeva, analyst at Phillip Nova, said: “The market is stuck between conflicting signals. On the demand side, all energy agencies, including the US Energy Information Administration, have voiced concerns about weak demand, dampening expectations for a sharp price rally in the near term. On the supply side, planned output increases from OPEC+ and indications of excess US refined product inventories are weighing on sentiment.”

A larger-than-expected build in US distillate inventories—up by 4 million barrels—fueled concerns over demand in the world’s biggest oil consumer, adding further downward pressure on prices.

Fresh economic data also stoked worries, with the US labor market showing signs of weakness and single-family housing starts falling in August to their lowest level in several years amid a glut of unsold new homes.

Thomas Varga, analyst at PVM Oil Associates, noted: “One of the factors capping oil prices is the uneven economic recovery, particularly in the US. The corporate sector benefits from continued deregulation policies, while consumers are starting to feel the pinch of tariffs, with signs of strain emerging in both the labor and housing markets.”

In Russia, the Finance Ministry’s plans to shield the federal budget from oil price volatility and Western sanctions helped ease some supply concerns.

Daniel Hynes, analyst at ANZ, wrote in a note: “President Trump’s comments expressing a preference for lower prices over imposing sanctions on Russia also contributed to calming fears about supply disruptions.”

The US dollar gained against all its major peers yesterday and extended these gains on Friday against most currencies, with the exception of the Japanese yen, which strengthened after a Bank of Japan decision that turned out to be more hawkish than expected.

The dollar rebounded following Wednesday’s Federal Reserve decision, which investors judged to be less dovish than anticipated. The FOMC cut interest rates by 25 basis points, but Fed Chair Jerome Powell appeared in no rush to ease borrowing costs aggressively during his press conference. The committee’s projections showed two more cuts this year, but the median forecast for 2026 pointed to just one additional cut—contrasting with market expectations for three.

Adding further momentum to the dollar’s rise yesterday was a larger-than-expected drop in weekly initial jobless claims. Despite recent signs of weakness in labor reports, the Fed upgraded its growth forecasts and projected the unemployment rate would fall across its forecast horizon. The claims data reinforced that optimism.

Nevertheless, even with additional gains in the greenback, Fed funds futures indicate that investors remain convinced of two further cuts this year—in October and December—and three more in 2026. This divergence between market and Fed expectations suggests the dollar’s path will remain uncertain in the near term.

If incoming data continue to point to a stronger labor market, investors may start trimming bets on aggressive easing, which could lend the dollar further support. Conversely, weaker labor data could shift sentiment in the opposite direction.

Sterling Retreats as Two BOE Members Vote for a Cut

Thursday saw the Bank of England’s latest policy decision, with policymakers opting to hold rates steady by a 7–2 vote while reducing the pace of gilt sales to £70 billion from £100 billion.

Sterling’s initial reaction was positive, likely due to the relatively hawkish tone in the statement, which reaffirmed that a gradual and cautious approach to unwinding monetary accommodation remained appropriate. The statement also noted that the overall degree of policy tightness had fallen, hinting that the need for further cuts was not pressing.

However, the pound quickly reversed and lost its gains, pressured by the surprise of two members voting for a 25-basis-point cut instead of just one as expected. The stronger dollar on the back of US jobless claims, combined with comments from Governor Andrew Bailey later in the day pointing to the likelihood of further easing ahead, added to sterling’s decline.

Yen Rallies After a Hawkish BOJ Tone

During today’s Asian session, focus turned to the Bank of Japan. Policymakers also kept rates unchanged in a 7–2 vote, but this time the dissenters pushed for a hike. The BOJ also unanimously announced it would begin selling its holdings of exchange-traded funds (ETFs) and Japanese real estate investment trusts (J-REITs).

The yen jumped immediately as traders ramped up bets on a rate increase. According to Japan’s overnight index swaps (OIS), the probability of a 25-basis-point hike by year-end rose to 70% from 65% prior to the decision. Markets are pricing a 43% chance of an October hike, with expectations of another similar move next year.