Copper prices hit four-month low
Copper prices fell to their lowest levels in four months amid concerns over global demand and a strengthening U.S. dollar.
Benchmark copper prices on the London Metal Exchange (LME) dropped to $13,515 per metric ton during trading on November 12, marking their lowest level since July 20. Prices later traded around $13,610 per ton, recording a daily decline of 1.5%. A sell-off in the technology sector and uncertainty surrounding the future of artificial intelligence investments weakened expectations for industrial metal demand.
Following stronger-than-expected U.S. inflation data, expectations that the Federal Reserve (Fed) could implement more aggressive interest rate hikes supported the dollar, adding further pressure on copper prices. A stronger dollar makes metals more expensive for buyers using other currencies, potentially limiting demand. Copper, widely used in data centers, power grids, and artificial intelligence infrastructure, remains sensitive to developments in technology investment. Investors are closely monitoring global growth expectations and developments in the Fed's monetary policy outlook.