Copper prices on the London Metal Exchange are declining as market participants scale back positions in industrial commodities ahead of the Federal Reserve's upcoming monetary policy decision.
Broader base metals are also under pressure, reflecting a cautious stance among traders who are weighing the potential impact of the central bank's latest guidance on global demand and interest rate trajectories.
Gold prices recently retreated, erasing a weekly gain of more than 2% that had briefly interrupted a four-week losing streak.
The pullback in copper and other base metals follows a period of volatility in the commodities complex.
Gold prices recently retreated, erasing a weekly gain of more than 2% that had briefly interrupted a four-week losing streak.
That earlier decline was driven by a firmer US dollar and growing market caution ahead of key economic data releases.
The current softness in industrial metals suggests that risk-off sentiment is broadening beyond precious metals into the industrial sector.