Copper dropped as the Federal Reserve begins a two-day policy meeting at which it is forecast to reduce the pace of its U.S. bond buying.
Copper for delivery in three months on the London Metal Exchange fell as much as 0.6 percent to $7,039.50 a metric ton and was at $7,052 by 10:16 a.m. in Tokyo. The metal lost 1.7 percent last week.
The Fed meets today and tomorrow to consider whether to taper its $85 billion-a-month in bond buying. Purchases will probably be cut by $10 billion, according to a Bloomberg survey of economists. Former Treasury Secretary Lawrence Summers’ exit from the Fed chairman race fueled speculation the central bank will take a more gradual approach to taper stimulus.
“Investors were reluctant to take new positions ahead of the Fed meeting,” said Tetsu Emori, the chief fund manager at Astmax Asset Management Inc. in Tokyo. “Overall sentiment remained subdued.”
Futures for delivery in December on the Shanghai Futures Exchange fell 0.3 percent to 51,010 yuan ($8,335) a ton. Metal for delivery in December sank 0.5 percent to $3.205 a pound on the Comex in New York.
On the LME, zinc and nickel also dropped, while aluminum and lead were little changed.
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