Copper and other base metals dipped during Asian trading on Wednesday, as investors were cautious ahead of the US Federal Reserve’s interest rate decision and on what policymakers might signal on future actions.
Three-month copper on the London Metal Exchange (LME) was down 0.3 percent at $8,493 a ton. It touched a one-week high of $8,770.15 on Tuesday.
Trading volume, however, remained thin with the Shanghai Futures Exchange shut for a national holiday. The Chinese bourse will resume trading on Thursday.
Data on Tuesday showed US job openings fell for a third straight month in March and layoffs increased to the highest level in more than two years, suggesting some softening in the labor market that could aid the Fed’s fight against inflation.
Investors mostly expect a 25 basis point hike and are looking for clues on Fed’s next steps.
Worries about a patchy post-COVID economic recovery in top metals consumer China, and US debt ceiling and banking sector risks also weighed on markets.
In other metals, LME zinc dropped 0.7 percent to $2,592.50 a ton, aluminum lost 0.6 percent to $2,353, nickel fell 0.4 percent to $24,855, lead shed 1.2 percent to $2,147, while tin gained 0.2 percent to $26,535. — Reuters
