LONDON: Copper prices rebounded from their lowest in more than a month on Friday after US jobs data spurred optimism that the Federal Reserve may temper its aggressive path of rate hikes.
Prices had ticked lower earlier as top metals consumer China extended COVID restrictions and concerns deepened about a potential recession. Benchmark copper on the London Metal Exchange was up 0.7% at $7,648 a tonne at 1615 GMT, after earlier touching its lowest since July 27 at $7,510.
The jobs data showed US employers hired more workers than expected in August, but moderate wage growth and a rise in the unemployment rate to 3.7% could ease pressure on the Fed to deliver a third 75-basis-point interest rate hike this month.
“The labour participation number has also improved, a highly encouraging sign for traders,” said Naeem Aslam, chief market analyst at Ava Trade.
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