NEW DELHI: Copper prices touched an over six-week high on Friday, as the dollar plunged after an unexpected fall in US producer prices strengthened view that the Federal Reserve was nearing the end of its interest rate-hike cycle.
Three-month copper on the London Metal Exchange was up 0.77% to $9,128 a tonne by 0215 GMT, after reaching $9,133 a tonne earlier, its highest since March 1 earlier.
The dollar languished near a two-month low against major peers on Friday after data that showed US producer prices unexpectedly fell by 0.5% in March, and there were signs that underlying producer inflation was subsiding.
A weaker dollar makes dollar-priced metals cheaper for buyers holding other currencies.
“While the demand fundamentals for copper remain robust over the medium and longer term, we continue to see downside risk to near term prices on the back of a slowing global economy in the 2H (second-half) 2023, and China showing signs of weaker than expected demand,” analysts at National Australia Bank Ltd said in a research note.
The most-traded May copper contract on the Shanghai Futures Exchange gained 1.65% to 70,290 yuan a tonne.
In Chile, the world’s top copper producer of copper, production should pick up in the coming years after a recent slump, mining minister Marcela Hernando told Reuters on Thursday.
Among other metals, LME aluminium advanced 0.61% at $2,381.50 a tonne, lead dipped 0.05% to $2,145.50, nickel was up 1.23% at $23,990.
Copper rises after US inflation data
Zinc was up 1% up to $2,865.50 and tin added 1.46% to $24,800. SHFE aluminium advanced 1.35% to 18,740 yuan, zinc added 1.64% to 22,370 yuan, lead nudged 0.13% lower to 15,300 yuan.
Tin climbed 2.07% to 197,020 yuan, nickel was up 2.69% to 186,560 yuan.
Comments
Comments are closed.