Copper Dips Amid Fed Jitters, Aluminium Rises on Gulf Tensions
Copper prices slipped on Wednesday as investors took a cautious approach ahead of the Federal Reserve's interest rate decision. The three-month benchmark copper contract on the London Metal Exchange (LME) fell by 0.4% to $13,631 per metric ton.
The decline was attributed to the strong US dollar, which makes dollar-priced metals more expensive for buyers using other currencies. Additionally, the prospect of higher interest rates weighed on demand expectations for growth-dependent metals like copper and zinc.
However, aluminium prices rose by 0.9% to $3,176 per ton as tensions in the Middle East escalated, driving up oil prices and concerns about metal supplies from the Gulf region.
The available LME stocks of copper and aluminium remain at historic lows, with copper stocks edging up to 101,975 tons and aluminium stocks at a 16-month low of 245,350 tons.