Base Metals Preview: Upside in copper seen limited as dollar holds firm on rate hike bets

COMEX copper upside seen limited as dollar holds on to massive rally witnessed late last night after US inflation data came in hotter than expected intensifying probability of a December Fed rate hike. Consumer Price Index (CPI) grew at a faster pace of 0.4% Month-on-Month (MoM) against 0.3% estimates. Fed Governor Christopher Waller said that a half-point Fed rate hike may be needed in December, if October core CPI inflation comes in around 0.3% or higher. The red metal is however seen bouncing back from 4-month lows witnessed late last week. Stocks on Wall Street , meanwhile, moved mostly lower during trading on Tuesday giving back ground following the substantial rally seen to start the week. The Nasdaq slid 187.26 points or 0.7 percent to 25,065.87, the S&P 500 fell 29.01 points or 0.4 percent to 7,520.93 and the Dow dipped 157.86 points or 0.3 percent to 52,231.89.

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