The price of industrial metals, such as copper, fell on Thursday after minutes from the Federal Reserve’s December meeting indicated that interest rates could rise faster than expected, reducing risk appetite.
As reported by Reuters at 1.00 pm GMT on Thursday, 08.00 am Peruvian time, benchmark copper on the London Metal Exchange (LME) fell 1.45%, to $ 9,557 a ton.
For its part, the dollar was strengthening, which reduces the demand for assets listed in that currency. Likewise, the Fed minutes put pressure on stocks, while the yield of some government bonds rose.
The authorities of the Central Bank of the United States said at their meeting last month that the monetary tightening could be accelerated by a “very tight” labor market and rising inflation.
“If central banks are tightening their monetary policy, this does not bode well for commodities, as liquidity is the underpinning of riskier assets,” said independent analyst Robin Bhar.
Despite pressure from macroeconomic influences and the omicron variant, metals such as copper were supported by low inventories and the prospect of increased demand due to the “green revolution,” he added.
In other base metals, aluminum in the LME was stable, at US $ 2,921 per ton; zinc lost 1.3%, to US $ 3,543; lead was down 0.1% to $ 2,285; tin was down 0.5% at US $ 39,090; and nickel was down 1.6%, at $ 20,300.
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