Copper slips ahead of US elections, Fed meeting

LONDON — Copper prices fell on Tuesday as the market waited for the result of the US midterm elections and a monetary policy meeting of the US Federal Reserve later this week.

Benchmark copper on the London Metal Exchange closed down 0.5% at $6,158 a ton.

Aside from a brief dip below $6,000 a ton last week, copper has been wedged in a trading range between around $6,100 and $6,350 a ton since late September.

“The market is waiting for developments in the United States, the election today and the Fed meeting. We’re not expecting a rate rise this month, but we may get clues about December,” said Capital Economics analyst Ross Strachan.

“We’re bearish in the short term on metals because of China, where there is a significant growth slowdown and where stimulus will take a while to feed through. We expect China to take further easing measures over coming months.”

Markets are closely watching the US midterm Congressional elections, as policy decisions that could sway the economy, corporate decision making and consumer spending hinge on the results.

The US Federal Reserve meets Wednesday and Thursday and again on Dec. 18-19 when there will be a news conference.

Many expect higher US rates in December. That would boost the US currency and make dollardenominated commodities more expensive for holders of other currencies.

Industrial metals gleaned some support from a Chinese official saying Beijing was ready to work with the US to resolve trade disputes between the world’s two largest economies.

“We are expecting China and the United States to start talks,” INTL FCStone analyst Edward Meir said in a note. “However, we are under no illusions that the discussions will ultimately be successful as the points in dispute are so contentious, they may be beyond fixing.”

Three-month zinc ended down 0.8% at $2,501 a ton. Aluminum fell 1.2% to $1,951 a ton; lead closed down 1.3% at $1,909, slipped 0.1% to $19,050; and nickel gained 0.2% to $11,775. —