LONDON: Copper prices rose as the dollar softened on Tuesday, though Chinese data signalling weak economic activity capped gains ahead of US inflation data that could yield clues to US interest rates.
Benchmark copper on the London Metal Exchange (LME) was up 0.6% at $8,853 a tonne by 1613 GMT. Prices of the metal viewed as a gauge of economic health have mostly traded between $8,500 and $9,000 a tonne since February.
Analysts said that China’s consumer price inflation hitting an 18-month low and factory gate prices falling at the fastest pace since June 2020 suggested sluggish activity and demand.
China’s trade and house price data due this week will also be eagerly awaited by industrial metals markets.
Support for copper prices comes from low stocks and large holdings of warrants, which have fuelled worries about supplies on the LME market and cressssated a premium for cash metal over the three-month contract.
On the technical front, copper is hemmed in by the 50-day moving average around $8,910 and the 100-day moving average around $8,740.
Aluminium, meanwhile, fell to $2,296 a tonne for its lowest since March 23 as concerns about demand from companies in the transport, packaging and construction industries outweighed worries over supplies in Europe and China.
Aluminium was last down 1.2% at $2,306 a tonne.
Zinc slipped 0.4% to $2,768, lead was down 0.4% at $2,087, tin lost 2.5% to $23,695 and nickel advanced 3.3% to $23,550.
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