Copper futures settled down on Wednesday, pressured by caution over rising US Treasury yields and escalating US-Iran tensions. However, some losses were limited after reports showed that the Chilean government raised its forecast for copper prices to an average of $5.90 per pound this year from $5.46 previously, as Chile is the world’s largest producer of the metal. Meanwhile, US producer prices unexpectedly fell in June for the first time in nearly a year, following Tuesday’s softer-than-expected consumer inflation report. Easing inflation pressures reduced expectations of a near-term Federal Reserve interest rate hike and helped to cushion further falls in copper prices.
Copper futures for September delivery fell $0.037 to settle at $6.3410 a pound on the Comex metals division of New York Mercantile Exchange. Copper on the London Metal Exchange was down by 0.45% at $13,581.50 a ton.