Copper Prices Fall Amid Fed Expectations and Strengthening Dollar
Base metals on the London Metal Exchange declined due to the US Federal Reserve's interest rate steps and activity in the foreign exchange market.
Copper and other base metal contracts traded on the London Metal Exchange recorded declines under the influence of a strengthening dollar and expectations of an interest rate hike from the US Federal Reserve.
Downward Trend on the London Metal Exchange
Futures contracts on the London Metal Exchange recorded declines of up to 0.7 percent following the first weekly drop seen since June.
Fed Meeting and Inflation Data
Following Friday's inflation data, traders raised expectations for an interest rate hike at this week's Fed meeting, though doubts remain regarding political pressure on the central bank.
Supply Tightening and Spot Premiums
Although the premium paid for spot copper relative to 3-month futures contracts narrowed sharply in previous weeks, it remained at $1 per ton on Monday, signaling a easing of supply tightness.
Tariff Expectations in Markets
Sucden Financial analysts stated that the market will maintain its volatile course, while copper had previously surged to record levels driven by expectations that the US would impose tariffs on refined metal.
Current Metal and Iron Ore Prices
At 13:58 Singapore time, copper on the LME fell 0.5 percent to $14,173 per ton. Zinc lost 1.3 percent in value, while aluminum showed no change.
Iron ore dropped for the fourth consecutive session, falling 0.5 percent to $96.90 per ton.