NEW DELHI: Copper prices inched higher on Tuesday, supported by a weaker dollar, even as trade remained lacklustre due to the Lunar New Year holidays in top consumer China.
Three-month copper on the London Metal Exchange was up 0.34% at $9,388 a tonne, as of 0242 GMT, with investors awaiting key US economic data for further direction.
“With appetite from China lower over the holiday period, attention will once again turn to Western economic releases to help drive sentiment,” Sucden Financial said in a note.
Market participants await US flash PMI data on Tuesday and economic growth data later this week for clues about the Federal Reserve’s monetary policy path.
Demand recovery hopes help copper towards seven-month high
Meanwhile, the dollar slipped against the euro on Monday, at one point hitting a fresh 9-month low, as the common currency found support from European Central Bank officials’ comments signalling additional jumbo interest rate rises in Europe.
A weaker dollar makes the greenback-priced commodity more attractive for those holding other currencies. In other metals, aluminium was up 0.08% to $2,638.50, zinc gained 0.4% to $3,433 and lead was up 0.15% at $2,058.
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