BEIJING: Copper prices in London climbed on Tuesday as the dollar slid to a three-month low, making the greenback-priced commodity cheaper for buyers, although gains were limited by soft demand outlook in top consumer China.
Three-month copper on the London Metal Exchange was up 0.3% at $8,390 per metric ton by 0147 GMT.
The US dollar edged lower on Tuesday after slipping overnight on weaker-than-expected new home sales data, while traders hunkered down on bets that the Federal Reserve could start cutting interest rates in the first half of next year.
Still, support from the weaker dollar was partly offset by concerns over copper demand from the traditional housing sector.
Profits at China’s industrial firms recorded a notable slower growth in October, data showed on Monday, disappointing traders.
The subsequent risk of deflation hurt sentiment across the base metals complex, ANZ analysts said in a note.
The most-traded December copper contract on the Shanghai Futures Exchange shed 0.2% to 68,090 yuan ($9,525.74) per ton.
Focus on China demand weighs on copper
Elsewhere, LME aluminium gained 0.5% to $2,222.50 a ton, tin moved nearly 1% higher to $23,195, zinc increased 0.3% to $2,547, lead rose 0.8% to $2,180, while nickel dipped 0.1% to $16,060.
SHFE aluminium added 0.2% to 18,925 yuan a ton, zinc gained 0.2% to 21,185 yuan, lead slid 0.9% to 16,100 yuan, nickel fell 1% to 123,670 yuan, while tin lost 3% at 194,140 yuan.
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