Copper prices fell to three-week lows on Thursday as other minerals lost ground as well on uncertainty about demand and global economic conditions.

Copper prices fell 0.7% at the London Metals Exchange to $9462 per ton as of 09:38 GMT, after hitting May 1 lows at $9223.

Prices were pressured by a surge in Chinese copper inventories last week, snapping a streak of large withdrawal that continued for three weeks, with demand weakening in China.

Concerns about an oversupply as a smeltery owned by the Freeport Indonesia company resumed its operations before its deadline following a fire last year. 

Investors are also concerned about the US financial stability after a decision by Moody’s to downgrade its credit rating.

A weaker dollar contained the losses and made the greenback-denominated minerals cheaper to holders of other currencies.

Crude lead fell 1.1%  in London to $1952 a ton, after hitting May 9 highs at $1947.

Lead inventories at the London Exchange rallied by 91% in the past two days to 234 thousand tons, the highest since late 2024, while aluminum fell 0.2% to $2467 a ton, and Zinc shed 0.2% to $2688. Nickel lost 0.9% to $15,450, while tin lost 1.4% to $32365.

Otherwise, the dollar index rose 0.3% as of 15:40 GMT to 99.8, with a session-high at 99.9, and a low at 99.4.

On trading, copper July futures fell 0.4% as of 15:37 GMT to $4.65 a pound.

Global oil prices fell on Thursday and extended the losses for the second straight session, plumbing a week trough after a report about a potential July production hike by OPEC+, triggering oversupply concerns.

Prices are also pressured by higher US crude stocks for the second straight week, in a negative sign for demand in the world’s largest fuel consumer.

Prices

US crude fell 1.7% today to $60.27 a barrel, the lowest in a week, with a session-high at $61.71.

Brent tumbled 1.65% to $63.57 a barrel, a week low, with a session-high at $64.99.

On Wednesday, US crude fell 1.5%, while Brent shed 1.45%, the first loss in four days on profit-taking.

OPEC+ 

Bloomberg reported that OPEC+ is considering another large production hike in July.

The report showed that the hike is estimated at 411 thousand bpd, but no final agreement was reached yet.

OPEC is working on reducing its previous production cuts and adding large amounts of supplies to the market in May and June, with Reuters reporting that total production hikes until November could reach 2.2 million bpd.

US stock

Official data from the Energy Information Administration showed US crude stocks rose 2.5 million barrels in the week ending May 16, the second weekly rise in a row, while analysts expected a drop of 1.9 million barrels.

According to the data, total stocks rose to 448.6 million barrels, the highest since July 2024 in a negative sign for US demand.

The US dollar rose in European trade on Thursday for the first time four days against a basket of major rivals, while trying to recoup from two-week lows on short-covering.

The gains come as concerns about US financial stability receded after the Republican-dominated House of Representatives passed Trump’s tax reform bill and sent it to the Senate. 

Now investors await crucial US data later today, which could provide important clues on the path ahead for Fed interest rates.

The Index

The dollar index rose 0.25% today to 99.87, with a session-low at 99.44.

On Wednesday, the index lost 0.3%, the third loss in a row, plumbing two-week lows at 99.34 on concerns about US financial stability. 

Fiscal Developments

The House of Representatives passed Trump’s tax reform bill in a huge victory for Republicans despite internal divisions, with the bill subjected to dozens of amendments to gain the support of ultra-conservative lawmakers.

The bill enacts huge tax cuts and raises the ceiling of the state and local tax deductions to $40,000, and imposes labor conditions on Medicaid beneficiaries starting 2026.

Despite passing the bill in the House, it still faces a complex path in the Senate as some Republicans there might demand even more changes.

US Rates

US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.

Atlanta Fed President Raphael Bostic said earlier this week that he’s leaning towards a single interest rate cut this year.

According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.

The odds of a 0.25%% Fed rate cut in July stood at 37%.

Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.

Now traders await a host of important US data later today, including unemployment claims and PMI data.

Gold prices rose in European trade on Thursday on track for the fourth profit in a row, hitting a two-week high as the dollar weakened against major rivals.

It comes after the US credit rating downgrade, which renewed concerns about the US financial stability and raised the challenges facing US policymakers.

The Price

Gold prices rose 0.9% today to $3345 an ounce, a May 9 high, with a session-low at $3309.

On Wednesday, gold rose 0.75%, the third profit in a row, as the dollar weakened against major rivals.

US Dollar

The dollar index fell 0.2% on Thursday on track for the fourth daily loss in a row, trading near a two-week trough at 99.34 against a basket of major rivals.

US President Donald Trump convened with his Republican allies in the House of Representatives but failed to convince them to support his tax reform bill, with hawks insisting the bill doesn’t cut spending far enough.

US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.

Atlanta Fed President Raphael Bostic said earlier this week that he’s leaning towards a single interest rate cut this year.

According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.

The odds of a 0.25%% Fed rate cut in July stood at 37%.

Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.

SPDR

Gold holdings at the SPDR Gold Trust fell by 1.72 tons on Wednesday to a total of 919.88 tons.