Copper prices hovered near a two-week high as traders awaited the Federal Reserve’s interest rate decision. The metal dipped 0.2% to $14,447.50 per ton on the London Metal Exchange at 1:25 p.m. in Shanghai. Earlier gains of over 1% on Tuesday were driven by optimism around artificial intelligence and tightening supply conditions.
The Fed’s policy meeting later on Wednesday will be closely watched for signals on the economic outlook and inflation. While officials are expected to keep rates unchanged this time, markets are pricing in a potential hike in December. Higher interest rates could weigh on metals like copper due to increased borrowing costs.
Copper has surged about 16% this year, supported by supply constraints as large quantities were shipped to the U.S. ahead of potential import tariffs. On Wednesday, a key spread on the LME surged, signaling further short-term supply pressures.