Copper prices slip as US inflation fuels expectations of a Fed rate hike
Copper fell after hotter-than-expected US inflation data raised market bets that the Federal Reserve will raise rates at its upcoming meeting.
Copper prices edged lower on Monday after US inflation came in hotter than forecast, prompting investors to increase the likelihood of a Federal Reserve rate hike at its next meeting. The spot-vs-future premium narrowed to $4.50 a ton, indicating easing supply tightness. The London Metal Exchange copper contract fell about 0.3% to $14,193 a ton, while other base metals such as zinc and iron ore also slipped amid a strengthening dollar and broader risk-off pressure.
Sucden Financial Ltd. analysts noted that reduced speculative positions and easing prompt tightness could keep copper trading in a choppy range absent a fresh macro or fundamental trigger. The metal had recently hit a record high on bets that US tariffs would boost domestic demand, supported by optimism for data-center and renewable-energy wiring needs and supply disruptions at key mines.
Why it matters
Copper moves influence global manufacturing costs and signal how inflation may shape US monetary policy.
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