Copper Near Two-Week High Awaiting Fed Decision

Copper traded near its highest close in two weeks as traders prepared for the Fed's rate decision. On the London Metal Exchange at 1:25 PM Shanghai time, the metal fell 0.2% to $14,447.50 per ton. On Tuesday, prices rose more than 1% amid a general rally in the metals market, driven by renewed positive sentiment around artificial intelligence and signs of supply pressure.

At the Fed meeting on Wednesday, attention will be focused on the assessment of the economy and inflation. The regulator is expected to keep the rate unchanged, but the market is pricing in a hike in December. Higher borrowing costs could be a headwind for metals.

Since the beginning of the year, copper has risen by about 16% amid a supply shortage: huge volumes of the metal were sent to the US in anticipation of import duties. On Wednesday, the key spread on the LME rose sharply, indicating increased short-term supply tension.

"As the end of the year approaches, the US tariff policy on refined copper could cause significant market volatility, and the eventual implementation of these measures is likely to set price trends," wrote analysts at Chinese broker Chaos Ternary Futures.

Other metals traded mixed: aluminum rose 0.4%, while zinc and nickel were little changed.