NEW DELHI: Copper prices fell slightly on Thursday, easing from near six-week highs, as the US dollar firmed on economic data that signalled the Federal Reserve will likely wait longer before cutting interest rates.
Three-month copper on the London Metal Exchange (LME) was down 0.3% at $8,237.50 a metric ton by 0354 GMT.
Meanwhile, the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) was unchanged at 67,720 yuan ($9,326.67) a ton.
The dollar drew support from better-than-expected retail sales data and more signs of cooling inflation, feeding into the narrative for an economic ‘soft landing’ which would allow the Fed more time before cutting rates.
A stronger greenback makes dollar-priced commodities more expensive for holders of other currencies.
Copper prices had touched a near-six week high on Wednesday after positive industrial production data from top consumer China boosted sentiment, but gains were constrained by weakness in the country’s property sector and a stronger dollar.
“Rising expectations of further stimulus from China provided a further boost to the complex,” ING said in a note.
Copper hovers near 5-week high on softer dollar, China stimulus hopes
LME aluminium eased 0.2% to $2,228 a ton, nickel fell 0.6% to $17,310, zinc declined 1.6% to $2,613.50, lead decreased 0.4% to $2,237.50 and tin shed 0.9% to $25,100.
SHFE aluminium eased 0.3% to 18,960 yuan a ton, nickel was down 0.9% at 137,890 yuan, zinc declined 0.7% to 21,655 yuan, while lead gained 1.7% to 16,735 yuan and tin fell 0.3% to 213,220 yuan.
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