The copper price has put on a rather lackluster performance so far in 2015, but the red metal broke that trend this week. On Thursday, it rose 3.25 percent to reach $2.87 per pound. That puts copper closer to $3 than it's been since the start of the year. Driving that change was a weaker US dollar, Investing.com reported. According to the latest update from the US Federal Reserve, interest rates will remain the same for now. However the Fed also "offered little hints" on the timing of an eventual rate hike. Speculation over further economic stimulus in China provided additional support for the copper price this week, according to the news outlet.
Copper price April 2015. Courtesy of Kitco.
Stefan Ioannou of Haywood Securities agrees that the rise in copper prices could be attributed to the recent break in this year's dollar strength. "The US dollar is definitely starting to weaken a little bit. Two or three weeks ago, the Canadian FX rate was about $1.27 ... now it's $1.20. So it is losing ground," he said. "That will immediately bode well for commodity prices that are quoted in US dollars." Ioannou also pointed out that other base metals have recently seen price rises as well. "There definitely seems to be a positive movement in a bunch of the base metals," he said, noting that the zinc price has risen over the past week. On Thursday, zinc was up 2.28 percent, trading at $1.07 per pound, and Ioannou added that zinc inventories have dropped below 500,000 tonnes on the London Metal Exchange.