Copper prices in London fell for a second consecutive day on Wednesday, dropping 2.40% to touch an intraday low of $13,066 per tonne—a level not seen in over seven weeks—and slipping below the 100-day moving average. The metal has declined 3.85% this week, narrowing its year-to-date gain to 4.85% and retreating 10.04% from the record high set in January. The primary downward pressure stemmed from a strengthening US dollar—which rose for the fifth straight day to a 13-month high, making the dollar-denominated metal more expensive for non-US buyers—alongside a hawkish shift by the Federal Reserve that reinforced expectations of interest rate hikes; these factors, combined with concerns that high prices are dampening demand and rising geopolitical risks in the Middle East, weighed heavily on market sentiment.
Analysis and Commentary
Copper
Copper prices in London fell for the second consecutive day, hitting a more than seven-week low during the session and dropping below the 100-day moving average; the metal recorded a cumulative decline of 3.85% for the week. Bearish factors included a five-day rally in the US dollar—which reached a 13-month high, thereby raising procurement costs for non-US buyers—and a hawkish shift by the Federal Reserve that reinforced expectations of interest rate hikes. These pressures, combined with concerns over demand due to high prices and dampened market sentiment stemming from geopolitical risks in the Middle East, exerted significant downward pressure on both spot and futures prices for copper..
Nickel
This news does not directly concern nickel-specific supply, demand, or policy information; however, factors mentioned—such as the strengthening US dollar and expectations of Federal Reserve rate hikes—exert overall downward pressure on the US dollar-denominated base metals sector, thereby having a slightly bearish impact on nickel prices.
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