SHANGHAI: Most base metals, including copper, which touched a one-month high last week, declined on Monday due to a strong dollar and uncertainty over potential tariffs under US President-elect Donald Trump’s administration.
Three-month copper on the London Metal Exchange (LME) slid 0.3% to $9,164 a metric ton by 0333 GMT.
The dollar starts a crucial week, lingering near a peak not seen in more than two years,as Trump makes his return to the White House, with an inaugural address that investors are eagerly awaiting to analyse for clues about his immediate policy plans.
The dollar index was last at 109.11 - slightly down from a 26-month high of 110.17 touched last week.
A stronger dollar makes greenback-priced commodities more expensive for holders of other currencies.
“Currently, we are just waiting for Donald Trump’s inauguration and hopefully there’ll be clarity on the incoming administration’s policies soon,” a trader said.
Meanwhile, the US Federal Reserve will likely hold interest rates steady on Jan. 29 and resume cutting in March, according to a slim majority of economists polled by Reuters.
LME aluminium was flat at $2,683, tin lost 0.3% to $29,670, nickel fell 1.6% to $15,845, lead remained flat at $1,967 and zinc lost 0.1% to $2,938.
Copper hits 5 weeks peak on China stimulus hopes
The most-active copper contract on the SHFE was down 1.3% to 75,400 yuan ($10,307.73)a ton.
SHFE aluminium fell 0.2% to 20,400 yuan a ton, nickel was down 1% to 126,760 yuan, zinc rose 1.2% to 24,200 yuan, lead added 0.4% to 16,780 yuan and tin was flat at 248,170 yuan.
Comments
Comments are closed for this article.