Base metals retreated on Friday as traders weighed the likelihood of higher interest rates and their negative impact on demand.
Copper slipped 0.7% to $13,499 a ton on the London Metal Exchange as of 10:09 a.m. in Singapore, marking a continuation of the pressure that saw benchmark three-month contracts fall 0.51% to $13,580 a metric ton earlier in the week.
The decline reflects broader market anxiety over the Federal Reserve’s policy path.
A growing chorus of Fed officials is warning that the central bank may soon need to maintain restrictive policy for longer than previously anticipated, dampening expectations for near-term rate cuts.
This shift in sentiment is weighing heavily on rate-sensitive commodities, as higher borrowing costs threaten to slow industrial activity and infrastructure spending.
Precious metals are also feeling the strain.