US Inflation Data Sends Copper Prices Lower

Copper prices fell on the London Metal Exchange due to hotter-than-expected US inflation data. The Federal Reserve's meeting this week has seen traders boost bets on a rate hike, which is typically bad for metals.

The premium paid for spot copper over 3-month futures narrowed sharply in previous weeks, indicating easing supply tightness. However, doubts remain about political pressure on the central bank.

Copper had rallied to a record high last week driven by bets the US would impose tariffs on refined metal. The metal is also supported by optimism over demand for copper in data centers and renewable energy, as well as supply setbacks at key mines.