Copper Prices Slip as Fed Rate-Hike Bets Rise Amid Strong Jobs Data

Copper prices slipped on Monday after a 10-week rally, as Federal Reserve rate-hike bets rose following stronger-than-expected jobs data. Three-month copper on the London Metal Exchange fell 0.27% to $14,377 a metric ton by 0334 GMT, while the most-traded copper contract on the Shanghai Futures Exchange was flat at 109,110 yuan ($16,257.41) a ton.

The US nonfarm payrolls increased by 162,000 in August, well above economists' expectations of a gain of 56,000, while the unemployment rate held steady. This data boosted expectations of a September Fed rate increase, although the dollar struggled to extend Friday's gains in Asian trading on Monday.

Copper prices have been choppy due to stronger jobs data and frequently shifting rate expectations, analysts at Chinese broker Galaxy Futures said. Concerns over another LME short squeeze have eased as the COMEX-LME price gap narrowed to just above $300 a ton and the share of cancelled LME warrants declined.