Copper Prices Plummet Amid Fed Rate Hike Expectations

Copper prices have reached a six-week low due to increasing expectations of a US Federal Reserve rate hike. On Monday, copper futures fell to approximately $6.4 per pound.

This decline is attributed to solid expectations for a Fed rate increase, with markets assigning roughly an 86% chance that the central bank will lift its policy rate by 25 basis points on Wednesday.

The recent stronger-than-expected US inflation data has contributed to this increased likelihood of a rate hike. Additionally, oil prices jumped after Saudi Arabia closed the key East-West pipeline that avoids the Strait of Hormuz, intensifying inflation worries.