Prices of base metals rose on Monday on a softer U.S. dollar, but trading remained thin amid caution around the uncertainty of who will become the next U.S. President.
Three-month copper on the London Metal Exchange (LME) rose 0.5% to $9,616.50 per metric ton by 0312 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) increased 0.4% to 76,780 yuan ($10,810.28) a ton.
The dollar slipped as investors braced for a potential pivot this week for the global economy as the United States chooses a new leader on Tuesday and, probably, cuts interest rates again.
A softer dollar makes greenback-priced metals cheaper to holders of other currencies. An interest rate cut will also likely help boost economic growth and eventually physical metals demand.
U.S. Democratic candidate Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls and the winner might not be known for days after voting ends.
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“Things are likely to be fairly volatile with thin volumes until there is clarity on the U.S. election result. The situation is unusually stark because of the potential difference in terms of tariff and trade policy depending on the victor,” said Guy Wolf, Global Head of Market Analytics at Marex Spectron.
“In addition, there is little clarity around whether post-election actions will match pre-election rhetoric. So it will be a difficult trading environment,” said Wolf.
LME aluminium edged up 0.4% to $2,611.50 a ton, nickel climbed 0.7% to $16,050, zinc gained 0.1% at $3,073.50, lead increased 0.2% to $2,057.50 and tin rose 1.5% to $32,210.
SHFE aluminium added 0.1% at 20,790 yuan a ton, nickel rose 0.8% to 124,300 yuan, zinc advanced 0.2% to 25,010 yuan, lead increased 0.7% to 16,805 yuan and tin jumped 2.7% to 262,520 yuan.
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