Copper Prices Slip as Rate Hike Bets Mount Amid Stronger Dollar

Copper prices have declined as investors bet on a potential interest rate hike by the Federal Reserve following hotter-than-expected US inflation data. The London Metal Exchange (LME) futures fell by as much as 0.6%, marking their first weekly decline since June.

The premium paid for spot copper over 3-month futures narrowed to $4.50 a ton, indicating easing supply tightness. This is a departure from previous weeks when the premium was sharply narrowed.

Analysts at Sucden Financial Ltd. noted that copper prices are likely to remain choppy until a fresh catalyst provides clearer direction. They attributed this volatility to reduced speculative length and eased prompt tightness.