Copper Prices Decline

Copper prices have fallen over 1% following the Federal Reserve's indication of fewer interest rate cuts for the coming year.

The Federal Reserve's shift to a more hawkish position has caused:
– An increase in bond yields
– The dollar strengthening to a 25-month high
– A rise in market volatility

These changes have contributed to a notable drop in key commodity currencies.

Market players are worried that there are limited prospects on the annual calendar to reverse this downward trend. The three-month London Metal Exchange (LME) copper contract has seen a 1.5% decline, trading at $8,912 per ton.

Further pressure comes from anticipated U.S. tariffs on Chinese imports and uncertainties regarding China's domestic demand outlook.

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