Copper futures fell to about $6.40 per pound on Monday, extending the previous week’s losses and reaching a six-week low, as mounting expectations of a US Federal Reserve rate hike pressured risk-sensitive assets. Traders increased their wagers on a Fed move after Friday’s stronger-than-expected US inflation data, with markets now assigning roughly an 86% probability that policymakers will raise the benchmark rate by 25 basis points on Wednesday.
Adding to inflation concerns, oil prices jumped after Saudi Arabia shut down the key East–West pipeline that bypasses the Strait of Hormuz. Meanwhile, copper prices had already slumped nearly 5% last Thursday after reports that the Trump administration had postponed a decision on tariffs for refined copper imports. According to those reports, US officials were worried that the proposed duties might push domestic copper prices even higher and further elevate manufacturing costs.
