Copper climbs as Fed hike clears uncertainty

Business Recorder reported that copper prices edged up on Monday after last week's US Federal Reserve rate increase removed months of uncertainty about the direction of interest rates. The three-month copper contract on the London Metal Exchange rose 0.06 per cent to $14,530.5 per metric tonne by 0300 GMT. Earlier the metal touched $14,600.50 a ton, its strongest level since September 10.

Everbright Futures analysts said the Fed move cleared the biggest near-term uncertainty for copper, while very tight supply at mines and extremely low Chinese domestic inventories still provided a floor. Chinese demand also stayed firm, with the Yangshan copper gauge closing last week at $124 a ton, its highest in almost four years. Expected restocking before China's National Day break next week also lent support.

Oil fell to its weakest level in more than a week despite fresh threats between the US and Iran on Sunday, amid a stalemate between the two countries. Trump signalled a readiness to meet Masoud Pezeshkian, who is due in New York later this week. Among other LME metals, aluminium dipped 0.27 per cent, while zinc, lead, nickel and tin all rose. The conflict has also weighed on copper, since it poses a threat to worldwide growth.