Copper prices hit new highs during the easing cycle, with market liquidity becoming the key driver

The Federal Reserve has initiated a rate cut cycle, and the improvement in market liquidity environment has become an important factor driving up copper prices. As a result, London copper prices broke through historical highs, and Shanghai copper also surpassed previous key resistance levels, both strengthening.

Commodity Supercycle Driven by Policy

A rate cut means lower market capital costs, and a large amount of capital flows into the commodities market seeking returns, providing ample liquidity support for copper price increases. In a loose monetary environment, copper, as an economic barometer and inflation hedge, often presents upward opportunities.

Physical Demand Supports Fundamentals

In addition to favorable policy factors, global manufacturing demand for copper remains strong, with robust demand in new energy, infrastructure, and other sectors, providing solid fundamental support for copper prices. Tight supply conditions further reinforce the upward trend.

Market Sentiment Turns Optimistic

The breakthrough of London copper to a new historical high has sparked market enthusiasm for long positions. Investors are full of expectations for the subsequent trend, with bullish sentiment continuing to rise, and copper news frequently making headlines.