Copper posts biggest weekly fall

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LONDON- Copper hit its biggest weekly fall since March 2020 after the Federal Reserve signaled it would begin to tighten monetary policy and China said it would sell state reserves to limit prices.

The shift in tone from the US central bank also pushed the US dollar towards its largest weekly gain since April 2020, making metals more expensive for buyers with other currencies.

Stock markets fell.

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Benchmark copper on the London Metal Exchange (LME) was down 1.7 percent at $9,159 a ton and down around 8.5 percent last week.

The sell-off follows a remarkable rally, with the metal used in power and construction reaching a record high of $10,747.50 in May.

“We probably have seen the peak for this year,” said ING analyst Wenyu Yao, adding that rising demand from infrastructure building and electrification would likely keep prices around current levels in the coming years. — Reuters

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