Strong Dollar and Higher Interest Rates Weigh on Copper and Zinc Prices

Copper and zinc prices fell on Wednesday due to a strong dollar, which makes dollar-denominated commodities more expensive for buyers using other currencies.

The benchmark three-month copper price on the London Metal Exchange dropped by 0.99% to $14,133.5 per metric ton, while the most-traded copper contract on the Shanghai Futures Exchange fell by 1.65% to 107,710 yuan ($16,022.55) per ton.

The strong dollar and inflation concerns pushed up interest rate hike expectations, which can weigh on metal demand by dampening economic activity.