LONDON: Copper prices bounced on Wednesday as the dollar steadied ahead of key US inflation data and a decision on interest rates from the Federal Reserve.
Traders said expectations of a dovish statement from the Fed and a lower US currency, which makes dollar-priced metals cheaper for holders of other currencies, had triggered buying across the board in industrial metals.
Benchmark copper on the London Metal Exchange (LME) was up 0.8% at $9,831 a metric ton as of 0909 GMT. It hit seven-week lows of $9,680 a ton on Tuesday.
“Focus is well and truly on US CPI data and what the Fed says and most importantly the “dot plot”,” a copper trader said, adding that the market was also waiting loan and total social financing (TSF) data from top consumer China this week.
Copper dips below $10,000 as consolidation continues
The Fed is widely seen holding rates at 5.25%-5.5%. The “dot plot” is its updated economic projections.
Aluminium was down 0.2% at $2,529, zinc rose 1.3% to $2,807.5, lead ticked up 0.1% to $2,159, nickel was unchanged at $17,825 while tin gained 2.8% to $32,820.
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