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Copper prices have fallen below US$14,000 per tonne on the London Metal Exchange (LME) for the first time since September, extending losses for a second consecutive session.
The metal declined by 0.7 percent to US$13,935 per tonne on Tuesday, amid concerns over technology stocks and uncertainty surrounding the political outlook in the United States.
According to Access Bank Group’s market commentary, copper has come under pressure in recent weeks amid concerns that a slowdown in artificial intelligence-related spending and a possible pullback in technology shares could weaken demand expectations.
Read more: Copper extends weekly losses as tech selloff dampens demand outlook
The bank said traders indicated that the metal’s near-term direction would largely depend on the performance of US equities and developments following the country’s midterm elections.
“A possible Democratic sweep could increase the likelihood of tighter regulatory scrutiny of high-growth sectors, adding to investor caution,” the commentary noted.
However, a weaker US dollar could provide some support for copper and other commodities priced in the currency.
Other base metals also recorded losses, with tin declining by 1.3 percent and heading towards its lowest closing level since April.
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