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Copper Nears Record Highs Again: The Rally Continues​

Copper is once again at the center of attention in the commodities market. On Tuesday, CUCUSD rose to around 6.80, almost returning to the highs seen at the beginning of August. Sellers failed to trigger any significant correction afterward: during the current session, prices are holding around 6.79, remaining very close to the levels reached.

At the same time, the global benchmark confirmed the strength of the move. On September 8, three-month copper on the London Metal Exchange rose above $14,700 per tonne, setting a new all-time high. This shows that the rally in CUCUSD is part of a broader global copper market move.

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What is supporting copper prices:​

• Metal supply remains limited. The market is increasingly concerned that mining companies will not be able to increase production quickly enough.
• The US is actively increasing imports. In July, copper shipments from the Democratic Republic of the Congo to the US reached a record 53,290 tonnes, while total US imports exceeded 220,000 tonnes in a single month for the first time. Traders are trying to redirect more metal to the US in advance amid the risk of new import tariffs.
• Power grids and new technologies require more and more metal. Copper remains one of the key materials for electricity networks, electric vehicles and data centers. Rising infrastructure investment is supporting long-term demand.
• Chinese industry continues to see strong external demand. In August, China’s exports increased by 25% year-on-year, while high-tech exports rose by 42.9% during the first eight months of the year. Growing shipments of electronics, electric vehicles and other technology products are supporting demand for industrial commodities, including copper.

What makes the current situation particularly notable is that the market is receiving support from two directions at once. On one side is long-term demand from the energy and technology sectors. On the other is the redistribution of physical supplies toward the US, which reduces the amount of freely available metal in other regions.

According to FreshForex analysts, the 6.60–6.80 range is becoming key for CUCUSD. Copper was trading around 6.65 just yesterday, and today it has once again approached the upper end of the range, showing that buyers remain interested. If the price holds above 6.60 over the coming days and does not return to a deeper decline by the beginning of next week, the current consolidation could be viewed as preparation for another upward wave. In this case, a breakout and sustained move above 6.80 could open the way to new local highs, and by the end of September, CUCUSD could well attempt to reach the 7.00 area.

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AI Boom Stumbles: Chipmakers Lose Nearly 6%​

It took just one trading session for the semiconductor sector to lose nearly 6% of its value. On September 14, the PHLX Semiconductor Index fell 5.9%, while #NVIDIA shares dropped around 3.4% and #Micron fell more than 5%. The pressure spread across the broader technology market as well, with the Nasdaq ending the day lower.

The main trigger came from warnings issued by AI company executives. Following concerns about the risks of technology developing too quickly, investors seriously began asking for the first time in a while: what will happen to chipmakers if massive spending on artificial intelligence starts to slow down?

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What spooked investors:​

• The market has started reassessing future demand. #NVIDIA and #Micron have been among the biggest beneficiaries of data center construction and growing demand for computing power. Even a hint of a potential slowdown in AI investment is prompting investors to take a more cautious view of future processor and memory sales.
• High interest rates are adding pressure. The yield on 10-year US government bonds briefly exceeded 5%, while expectations of another Fed rate hike remain elevated. The more expensive money becomes, the harder it is for technology stocks to justify high valuations.
• Investors are taking profits after a strong rally. The semiconductor sector remains one of the year's top performers and, even after the sell-off, is still up around 57% since January. Against this backdrop, the emergence of a new risk provided a convenient reason to close some profitable positions.

The problem for the market is that current high valuations of technology companies already largely assume that AI investment will continue growing rapidly. As companies consistently increased spending on equipment and data centers, this scenario worked in favor of chipmakers. Now, the market has to consider the opposite possibility as well.

At the same time, it is still too early to talk about the end of the AI boom. Demand for computing power remains high, and a single day of selling does not change the long-term trend. However, the nearly 6% decline showed just how sensitive the sector has become to any doubts about the future pace of artificial intelligence spending.

According to FreshForex analysts, as long as pressure on chipmakers persists, it will be harder for #NQ100 to reach new highs. If US Treasury yields remain around 5% and concerns about a slowdown in AI investment intensify, pressure on the technology index could continue.

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The Fed Raised Rates, Yet Gold Is Still Rising!​

The gold market has once again surprised investors. After the Fed raised its interest rate by 25 basis points to 3.75–4.00% on September 16, gold did not continue falling. Instead, it reversed higher. On September 17, XAUUSD gained around 1.6% and rose toward $4,330 per ounce, even though prices had fallen to approximately six-week lows just the day before.

At first glance, this reaction may seem illogical: higher interest rates usually strengthen the dollar and reduce gold’s appeal. But this time, the market reacted differently — and that is the key to understanding the current move.

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Why Is Gold Rising Despite Higher Rates?

• The rate hike had already been priced in. The Fed’s decision itself did not come as a surprise to the market. Therefore, after the announcement, some market participants began closing their previous short positions in gold.
• Investors are focused not on the hike itself, but on what comes next. The Fed has indeed maintained a hawkish tone and left the door open to another rate hike before the end of the year. However, the market has already started assessing how far the regulator can actually go if the economy begins to slow down.
• The oil rally has paused. Reduced pressure from oil prices has somewhat eased concerns about another wave of inflation. This is important for gold because it lowers the risk of even more aggressive Fed tightening.
• Demand for safe-haven assets remains strong. Despite the rate hike, geopolitical tensions in the Middle East and overall nervousness in global markets have not disappeared. This continues to support interest in gold as a safe-haven asset.

For the market, it is now important not only to consider the current interest-rate level, but also how quickly the Fed can continue tightening without causing serious damage to the economy and stock market. This is why gold has an opportunity to recover: investors have seen that a hawkish Fed decision does not necessarily mean an automatic continuation of the XAUUSD sell-off.

According to FreshForex analysts, the current gold recovery shows that the market is still willing to buy XAUUSD dips when signs of stabilization emerge. If prices hold above the $4,300 area, buyers may attempt to extend the move toward $4,400–4,500.

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Bitcoin above $87,000: buyers are back!​

The cryptocurrency market is back in the spotlight. On September 21, Bitcoin (BTCUSD) rose above $87,000, continuing its strong recovery after recent fluctuations. The move was not isolated: at the same time, the Nasdaq (#NQ100) once again approached its all-time high, while investor interest in riskier assets increased noticeably.

This makes Bitcoin’s current rise particularly interesting. The market is showing that BTC is now moving not only as an independent crypto asset but also as part of broader risk appetite, alongside the U.S. technology sector.

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Why Is Bitcoin Rising Alongside the Index?​

• The market is buying risk again. After several volatile sessions, investors returned to technology stocks, while the Nasdaq moved back toward record levels. This creates a favorable environment for Bitcoin: when risk appetite increases, cryptocurrencies often attract additional capital inflows.
• Bond yields are falling. The yield on 10-year U.S. Treasury bonds fell below 5%. This reduces pressure on risk assets and makes instruments such as BTCUSD and #NQ100 more attractive to investors.
• Oil is no longer putting pressure on the market. Falling oil prices have eased concerns about inflation. The less the market fears another wave of price increases, the more comfortable investors become with growth stocks and cryptocurrencies.
• Strong momentum in technology is supporting crypto as well. Gains in artificial intelligence-related stocks have once again strengthened confidence in the technology sector. Against this backdrop, Bitcoin is increasingly trading in the same direction as #NQ100 rather than moving independently.

At this point, not only the move above $87,000 matters, but also the nature of the move. While the cryptocurrency market often used to move independently, Bitcoin is now increasingly responding to the same drivers as the U.S. stock market: bond yields, inflation expectations, and overall investor sentiment.

According to FreshForex analysts, as long as risk appetite remains strong, Bitcoin has room for further growth. The current correlation with #NQ100 is supporting buyers: a strong technology sector, falling bond yields, and easing inflation concerns are creating a more favorable environment for BTCUSD. If BTCUSD holds above $87,000, the next psychological target for buyers could be $90,000, while a breakout above this level could open the way toward the $92,000–93,000 area.

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Dollar pressures euro and pound: currency pairs hit new lows​

The U.S. dollar is ending the week significantly stronger, but this move is particularly evident across the major currency pairs. On September 25, EURUSD is trading around 1.1370 — its lowest level in two months, while GBPUSD is holding near 1.3220 — close to a three-month low. For the euro, this is already the third consecutive week of declines, while the British pound is having its worst week in roughly four months.

The main momentum is coming from the United States. Following the Fed’s September rate hike, investors are increasingly considering the possibility of further monetary tightening, while a sell-off in U.S. government bonds has pushed long-term yields to their highest levels in more than 20 years. Against this backdrop, the Dollar Index has gained more than 1% this week, but for traders, the more important question is how this move is affecting EURUSD and GBPUSD.

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Why EURUSD continues to decline:​

• U.S. interest rates are becoming more attractive again. The Fed has already raised its rate to 3.75–4.00% and continues to signal the possibility of further tightening. The higher the yield on dollar-denominated assets, the harder it becomes for EURUSD to recover.
• The ECB is taking a more cautious approach. The European regulator has also raised its rate to 2.50%, but its officials are trying to contain expectations of rapid further hikes. Christine Lagarde has emphasized that rising energy prices alone are not enough to automatically justify tighter monetary policy.
• Even strong European data are not helping the euro for now. Eurozone business activity in September came in above expectations, yet EURUSD continued to decline. This shows that the divergence in interest-rate expectations and rising U.S. yields are currently more important to the market than individual positive European indicators.

As a result, EURUSD has moved closer to 1.1370. If selling pressure persists, market attention could shift toward the 1.1300 area, while a return above 1.1450 would be the first sign that the current downward move is losing momentum.

Why GBPUSD is falling even faster:​

• The pound’s interest-rate advantage has narrowed. The Bank of England kept its rate at 3.75%, while the Fed raised the upper bound of its target range to 4.00%. The yield differential is therefore providing less support for the British currency.
• The U.K. economy remains weak. Business activity slowed in September, while demand for workers remains under pressure. This limits the Bank of England’s ability to raise rates too quickly.
• High energy prices create a double challenge. They add to inflationary pressure while simultaneously reducing household real incomes and potentially slowing economic growth further.
• The market is already pricing in further tightening. Several future Bank of England rate hikes are partly reflected in current prices, meaning the pound needs new positive catalysts to sustain a recovery.

As a result, GBPUSD has fallen to around 1.3220 and is down approximately 1.25% since the beginning of the week. A move below 1.3200 could increase pressure on the pair, while a return above 1.3300–1.3350 would be the first sign of a potential recovery.

According to FreshForex analysts, as long as U.S. yields remain near multi-year highs, the advantage remains with the dollar, and pressure on EURUSD and GBPUSD may continue.​

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