Copper down amid concerns over US interest rates

LONDON, Jan 13 (Reuters): Copper prices were slightly weaker on Tuesday as uncertainty about future US interest rate cuts and a slightly firmer dollar were countered by supply worries and continued interest from speculators.

Benchmark three-month copper on the London Metal Exchange slipped 0.2% to $13,185.50 per metric ton by 1030 GMT, recovering from an intra-day low of $13,033 touched in Asian trading.

LME copper has surged 45% over the past 12 months, hitting successive record highs, including $13,387.50 last week.

"There's loads of liquidity around and a lot of people are trying to get away from the U.S. and find safe havens outside that in terms of financial markets," said Dan Smith, managing director at Commodity Market Analytics.

There is a good chance LME copper will break through the $14,000 barrier in the near future, he added.

Copper's rally has been fuelled by disruptions at mines, worries about deficits this year and a flow of copper to the U.S. ahead of potential tariffs that are tightening supply elsewhere.

The tightness is showing up in the rising premium of LME cash copper over the three month contract , which rose to $64 a ton on Tuesday, the highest in a month and up from $3 a week ago.

Some traders were on the sidelines, however, ahead of U.S. consumer price index data later on Tuesday.

After softer jobs data, Goldman Sachs pushed back its forecasts for the U.S. Federal Reserve to cut interest rates in 2026.