Copper Edges Higher as Treasury Yields Ease Ahead of Fed Decision

Copper prices edged higher on Wednesday as US Treasury yields eased ahead of the Federal Reserve's interest rate decision. Three-month futures rose to a premium of $62.53 a ton over copper for immediate delivery, indicating ample supply in the market.

The London Metal Exchange saw copper futures increase by 0.7% to $14,176 a ton at 12:20 p.m. Singapore time. Other metals were mixed, with nickel rising 0.5% and lead increasing 0.6%. However, prices are still down sharply from a record reached last week driven by bets on a US tariff-driven supply squeeze.

The White House has so far held off on new tariffs, which had contributed to traders' optimism earlier in the year. Stockpiles in LME-accredited storage facilities outside the country continued to rise this week, diminishing the threat of a supply pinch. The Fed is widely expected to raise interest rates for the first time since 2023, typically a headwind for non-interest bearing assets like commodities.