Copper prices continued to stay in the green in this morning's trading session. It is anticipated that prices could maintain their upward momentum throughout today, driven by the stimulus signals from China, while macroeconomic pressures ease.

In a speech late Monday (January 8), Zou Lan, head of the monetary policy department of the People's Bank of China (PBOC), indicated that the PBOC could utilize open market operations, medium-term lending facilities, and reserve requirements along with other monetary policy tools to support credit growth. This move by the PBOC official has increased confidence that China will continue to ease monetary policy to support the economy, thereby benefiting copper prices.

Moreover, analysts point out that this is a ripe time for China to further loosen monetary policy. The yield on China's 10-year government bonds is at its lowest level in nearly four years. Furthermore, policymakers may begin shifting their focus from stabilizing foreign exchange to easing monetary policy, as concerns over the depreciation of the yuan are gradually being alleviated. Meanwhile, major commercial lenders have recently cut deposit rates.

As such, the market holds high expectations that China will step up its easing efforts in the near future. If these expectations are confirmed, copper prices could rise further.

For precious metals, silver and platinum prices extended their decline in this morning's session. However, prices might rebound due to the weakening USD. Data from the Federal Reserve Bank of New York indicates that Americans expect a sharp drop in inflation, putting pressure on the greenback.

Specifically, the New York Fed stated that U.S. inflation for the next year is expected to be 3%, the lowest level since January 2021. For long-term inflation, survey participants forecast inflation for the next three years at 2.6%, down from 3% in November's forecast, while five-year inflation is predicted to be 2.5%, down from 2.7% in November.

Source: MXVMXV