Copper hits over one-week high on softer dollar, US stimulus hopes

Copper prices hit a more than one-week high on Thursday, as a weakening dollar and progress in US stimulus talks boosted hopes for driving up demand for the red metal, often used as a gauge of global economic health.

Three-month copper on the London Metal Exchange was up 0.3pc at $6,692 a tonne by 0652 GMT.

The contract hit its highest since Sept. 23 at $6,710 a tonne earlier in the session.

The Trump administration proposed new stimulus worth more than $1.5 trillion to House Democrats, White House chief of staff Mark Meadows said on Wednesday.

"The physical metals markets have quietened down again and consumers are awaiting Chinese and US events to unfold to get a clearer picture...before committing to further or longer term purchases," Malcolm Freeman, director of Kingdom Futures, said in a note.

The dollar retreated as robust US data and hopes for fiscal stimulus boosted investors' confidence in riskier currencies.

A softer dollar makes greenback-priced metals more appealing to holders of other currencies.

Among other metals, nickel advanced 0.4pc to $14,579 a tonne, zinc fell 0.3pc to $2,396.50 a tonne while lead dipped 0.1pc to $1,822.50 a tonne.

However, trade was tepid as top metals consumer China is closed for holidays, with the Shanghai Futures Exchange shut during Oct. 1-8.

FUNDAMENTALS

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