Copper prices edged higher on Thursday, supported by lingering concerns over low inventories, but gains were limited as markets in top metals consumer China were shut for a week-long holiday and a slide in the US dollar paused.
Three-month copper on the London Metal Exchange rose 0.4% to $9,877.50 a tonne by 0330 GMT.
Fundamentals
Copper inventories in LME-approved warehouses stood at 84,875 tonnes, down 65% since August.
Aluminium climbed 1% to $3,014.50 a tonne, rebounding after a 1.5% drop in the previous session.
Copper climbs on low inventories, soft dollar
Rising geopolitical tensions surrounding Ukraine have fuelled market anxiety about metals supply, including aluminium, as the United States has threatened to hit major producer Russia with economic sanctions.
The United States will send nearly 3,000 extra troops to Poland and Romania to shield Eastern Europe from a potential spillover from the crisis over the massing of Russian troops near Ukraine, US officials said on Wednesday.
The U.S dollar found a footing in Asia on Thursday as investors awaited policy decisions and outlook from the Bank of England and the European Central Bank.
The dollar's softness after recently tumbling from a 19-month peak helped lift copper prices over the previous two sessions, as a weaker US currency makes greenback-denominated metals cheaper for holders of other currencies.
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