Industrial Metals Rise After Dovish Powell Signals Fed Rate Cut

Industrial metals and iron ore rose after Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium, where he signaled the central bank would likely cut interest rates next month.

Traders increased their bets on a 25-basis-point reduction in September after Powell suggested that the central bank may reduce borrowing costs before key economic data improves. Easier monetary policy tends to weaken the US dollar, which in turn makes commodities more affordable in other currencies and can support demand for industrial metals.

Prices of key industrial metals have been restricted this year by concerns over waning demand from ...