Copper Slips Ahead of Fed Decision as Aluminium Soars on Gulf Tensions

Copper prices slipped on Wednesday in cautious trade ahead of the Federal Reserve's interest rate decision later in the day. The benchmark three-month copper price on the London Metal Exchange fell by 0.4% to $13,631 a metric ton at 1002 GMT.

The U.S. dollar was near one-month highs as investors stayed on the sidelines ahead of the Fed's decision, with markets pricing in a roughly 30% chance of a 25-basis-point hike. A strong U.S. currency makes dollar-priced metals more expensive for buyers using other currencies.

However, aluminium prices rose by 0.9% to $3,176 a ton as tensions in the Middle East escalated, inflating worries about metal supplies from the Gulf region and driving oil prices up sharply.

The available LME copper stocks edged up to 101,975 tons after 975 tons were put back on warrant in the LME-registered warehouses in Taiwan. The Yangshan copper premium, a gauge of interest in importing metal to China, stabilised at $112 a ton, indicating easing demand compared with a week ago.