LONDON, Jun 24 (.) – Copper fell on Thursday for the first time this week as mixed signals from the Federal Reserve sparked nervousness among investors about the timing of interest rate hikes, which could weaken the demand for metals.
* At 1120 GMT, three-month copper on the London Metal Exchange (LME) was down 0.6% at $ 9,428 per tonne. Prices are down about 12% from the record high of $ 10,747.50 hit in May.
* “The market is still looking for clues to see what the Fed’s temperature is relative to rates,” said WisdomTree Commodity Strategist Nitesh Shah.
* “Copper fundamentals still look good, but sentiment changed slightly with some aggressive comments from the Fed and the release of copper from Chinese reserves.”
* The dollar was down but still near a two-month high, making commodities more expensive for holders of other currencies.
* Prices also weighed on a plan by China’s state reserves administration to auction its copper, zinc and aluminum reserves from July 5-6 in an attempt to cool rising prices.
* Copper collateral stocks at LME-registered warehouses rose to their highest level since June 2020 at 185,200 tonnes.
* The number of canceled warrants, metals destined for delivery, stood at 5% of total inventories, its lowest level since September 2011.
* To view base metal futures prices:
(Reporting by Zandi Shabalala, additional reporting by Mai Nguyen. Edited in Spanish by Janisse Huambachano)