Copper slips ahead of Fed rate decision, aluminium rises on Gulf fighting

LME zinc CMZN3 eased 0.1% to $3,572, lead CMPB3 rose 0.8% to $1,909, while tin CMSN3 and nickel CMNI3 added 1.2% to $54,180 and $17,175, respectively.

Copper fell on Wednesday in cautious trade ahead of a Federal Reserve interest rate decision later in the day and signs of easing supply tightness in the world's biggest consumer China, while aluminium rose in response to renewed fighting in the Middle East.

Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.4% at $13,631 a metric ton by 1002 GMT, but held above the 50-day moving average, providing support at $13,576.

The U.S. dollar was near one-month highs as investors stayed on the sidelines ahead of the Fed's decision, with markets pricing in a roughly 30% chance of a 25-basis-point hike.

A strong U.S. currency makes dollar-priced metals more expensive for buyers using other currencies, while the prospect of higher rates weighs on demand expectations for growth-dependent metals.

Adding further pressure on copper as well as on zinc, Asian stocks extended a selloff caused by worries about AI valuations. FRX/

In other LME metals, aluminium rose 0.9% to $3,176 a ton as tensions in the Middle East escalated, inflating worries about metal supplies from the Gulf region and driving oil prices up sharply.

Available LME aluminium stocks MALSTX-TOTAL are at a 16-month low of 245,350 tons, and are dominated by Russian-made metal, which many traders avoid.