NEW DELHI: Copper prices fell slightly on Tuesday on a firmer US dollar, with the market focussed on key inflation data out of the United States that could offer clarity on whether the Federal Reserve is likely to raise interest rates further to tame inflation.
Three-month copper on the London Metal Exchange eased 0.1% to $8,159.50 a metric ton by 0405 GMT.
The most-traded December copper contract on the Shanghai Futures Exchange was up 0.7% to 67,480 yuan ($9,257.53) a ton.
Fed Chair Jerome Powell and his chorus of policymakers have in recent days pushed back against market expectations that the US central bank was done with its aggressive rate-hike cycle after it held rates steady at its latest policy meeting.
The dollar rose marginally to 105.68 against a basket of currencies.
A stronger US currency makes dollar-priced commodities more expensive for holders of other currencies. “Traders were also wary ahead of key US inflation data that could determine the Fed’s next move on interest rates.
This comes as the industry gathers in Shanghai for Asia Copper Week,“ ANZ Research said in a note.
Copper gains as bearish traders cancel short positions
LME aluminium gained 0.2% to $2,228.50 a ton, nickel fell 0.3% to $17,340, zinc gained 0.2% to $2,557.50, lead was down 0.2% at $2,165 and tin eased 0.3% to $24,860.
SHFE aluminium gained 0.3% to 18,985 yuan a ton, nickel was up 0.4% to 138,800 yuan, zinc gained 0.4% to 21,655 yuan, lead fell 0.6% to 16,380 yuan and tin rose 0.3% to 212,860 yuan.
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