Goldman Sachs analysts predict that copper and gold prices are anticipated to experience the most immediate and significant increase among commodities when the Federal Reserve (Fed) implements interest rate cuts. As per their Tuesday projections, copper prices could rise by 6%, gold by 3%, and oil by 3%.
On Wednesday morning, copper’s three-month futures on the London Metal Exchange traded close to the highest level in three weeks at $8,548 per ton, while gold reached its highest point in nearly two weeks, reaching $2,030.30 per ounce.
However, analysts on Wall Street suggest that the impact on natural gas or agricultural commodities is expected to be minimal, as micro factors such as seasonal inventory cycles and weather patterns exert a more substantial influence compared to the effects of interest rate cuts.
A majority of economists surveyed by Reuters expect the Fed to initiate interest rate cuts in June.
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