Fed Rate Decision Weighs on Copper Prices Ahead of Meeting

Copper prices ticked down on Wednesday as investors grew concerned about tightening monetary policy and its potential impact on demand expectations.

Benchmark three-month copper on the London Metal Exchange slipped 0.28% to $13,647 a metric ton by 0300 GMT, while the most-traded copper contract on the Shanghai Futures Exchange was 0.21% lower at 104,830 yuan ($15,480.83) a ton.

The US Federal Reserve's policy meeting is expected to conclude with rates remaining steady, although market pricing suggests a rate increase in September has risen in recent weeks.

Daniel Hynes, senior commodity strategist at ANZ, warned that high interest rates could weigh on demand expectations for growth-dependent commodities like copper by restraining economic activity.