Copper Prices Slide Amid US Inflation and Rate Hike Fears

Copper prices slipped on Monday as hotter-than-expected US inflation data boosted bets on the Federal Reserve hiking interest rates. The London Metal Exchange (LME) futures fell as much as 0.6% in their first weekly decline since June.

Most major metal contracts traded lower due to a strengthening dollar and broader pressure on risk assets, with copper declining 0.3% to $14,193 a ton by 10:05 am Singapore time. Zinc was down 0.7%, while aluminum remained flat.

The inflation data saw traders ramp up bets on a rate hike at the Fed's meeting this week, but doubts remain about political pressure on the central bank. Tighter monetary policy typically hurts non-yielding assets like metals.