Copper Prices Slide Amid Rate Hike Worries

Copper prices dipped on Tuesday as investors weighed in on potential US interest rate hikes and their impact on demand. The benchmark three-month copper price on the London Metal Exchange fell by 0.5% to $13,664 a metric ton.

Market analysts believe that higher interest rates could dampen economic activity and reduce demand for copper, which has been benefiting from expectations of rising demand in areas such as artificial intelligence infrastructure, electrification, and electric vehicles.

The market is also awaiting the outcome of the US Federal Reserve meeting on Wednesday, where expectations are that 38% of market participants expect at least a 25 basis points hike, up from 16% a week earlier.