Copper Hits 10-Day Low as Inflation and AI Selloff Weigh
A deal at Chile’s Escondida mine eased immediate supply concerns as hotter US inflation and weakness in tech shares pressured prices.
Key takeaways
- London copper touched its lowest price since October 5.
- Hotter US inflation and a selloff in Asian tech shares weighed on metals.
- A deal at BHP’s Escondida mine removed the threat of a stoppage.
Copper fell for a third straight session on Thursday, with the London three-month benchmark touching $14,289 a tonne, its lowest level since October 5. Reuters reported it was down 1.2% at $14,314 by 1030 GMT.
Hotter US inflation data revived talk of another Federal Reserve rate hike later this month. A selloff in Asian technology and chip shares also weighed on metals, as investors questioned the strength of the AI spending boom.
Ole Hansen, head of commodity strategy at Saxo Bank, said easing supply worries and the inflation report had prompted profit-taking. He also said copper was challenging an uptrend that began in March and had slipped below its 50-day moving average.
Immediate supply concerns eased after BHP and the supervisors’ union at Chile’s Escondida mine reached a deal on Wednesday, avoiding a strike. Antofagasta reported a 7% rise in third-quarter copper production and maintained its annual outlook despite a strike at its Centinela mine.
As of 17:25 UTC Thursday, December copper futures traded at $6.551 a pound, down 1.64% from the previous close.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
