Freeport-McMoRan (FCX) shares surged on Tuesday amid an increase in the pri💫ces of copper and gold, two of the main commodities produced by the mining giant.

Copper futures prices jumped around 4%, reaching their highest level since mid-July, after the government of China 澳洲幸运5官方开奖结果体彩网:revealed stimulus measures designed to provide a jolt to the country's sluggish housing and financial markets.

Meanwhile, gold futures added roughly 1% on Tuesday, extending a recent uptick that has lifted the precious metal's price to record levels. Lingering concerns about inflation following the Federal Reserve's pivot to interest-rate cuts have helped drive the precious metal's strong price performance.

Shares of Freeport McMoRan finished Tue♍sday up about 8%.

Outlook for Metals Prices

The price of copper had been trending higher in September as the Fed prepared for and executed its first 澳洲幸运5官方开奖结果体彩网:interest-rate cut. Since Fed rate cuts tend to weaken the dollar versus other currencies, and copper prices are listed in dollars, the metal becomes cheaper for buyers using other currencies, which can boost global demand and support higher prices.

Copper market analysts expect China's 澳洲幸运5官方开奖结果体彩网:newly announced stimulus measures to underpin additional strength for the metal. China is the world's largest consumer of copper, and demand for the metal hinges largely on the property and construction sector, given its use in electrical wiring and plumbing. Since China's stimulus package specifically targets the struggling property and housing markets, the policies could help drive a meaningful recovery in copper demand in the country.

Meanwhile, monetary easing programs by central banks around the world are providing support for record-high gold prices, while the uncertainty surrounding the U.S. presidential election could also drive investment in the classic "safe haven." Analysts have suggested that gold prices could reach the milestone level of $3,000 per ounce by mid-2025.