The prices of copper fell in early trading on Wednesday, due to fears of a rapid rise in interest rates by the Federal Reserve (Fed), the slowdown in global economic growth and more sanctions on Russia.
This slowed risk appetite and pushed the dollar to its strongest level in almost two years.
Thus, three-month reference copper on the London Metal Exchange (LME) fell 0.6% to $10,391 a tonne.
Aggressive comments from the US Federal Reserve “detracted from the rally,” Saxo Bank analyst Ole Hansen told Reuters. “The market is worried about the economic slowdown,” he added.
Despite this, the expert predicted new price increases because the supply is scarce and more metal will be needed for the decarbonization of the world.
China, the biggest consumer of metals, is facing its most severe wave of COVID-19 since the Wuhan outbreak and Chinese manufacturing and services activity contracted in March.