LONDON: Copper prices rose on Tuesday from a four-week low in the previous session as a dollar rally paused and global equities steadied following a sell-off.
Strong US employment data last week raised the spectre of higher than expected interest rates, turning markets cautious and boosting the safe-haven dollar.
Copper and equities are both bets on economic growth and their prices often move in tandem. The stronger dollar hurts dollar-priced copper by making it costlier for many buyers.
Benchmark copper on the London Metal Exchange (LME) was up 0.7% at $8,932.50 a tonne at 1718 GMT, up from Monday’s low of $8,808.
Prices of the metal used in electrical wiring reached a seven-month high of $9,550.50 on Jan. 18 as the dollar fell and speculators bet that China, the biggest consumer, would bounce back from last year’s economic slump.
LME aluminium rose 0.1% to $2,535 a tonne, nickel gained 0.7% to $27,450, lead added 0.7% to $2,115 and tin was up 1.5% at $27,295.