Copper prices edged higher on Tuesday, while traders awaited more stimulus cues from top consumer China as well as the outcome of the US presidential election.
Three-month copper on the London Metal Exchange (LME) rose 0.2% to $9,718.5 per metric ton by 0225 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) increased 0.9% to 77,660 yuan ($10,929.56) a ton.
The US dollar was on the back foot, making greenback-priced commodities more appealing to other currency holders.
“Copper’s short-term trend will depend on who wins the election and what details the Chinese officials disclose… A Trump presidency could pressure prices as it will exacerbate trade tensions with China,” Marex consultant Edward Meir said.
The US presidential election will take place on Tuesday, but the winner of the razor-thin race between Democrat Kamala Harris and Republican Donald Trump may not be known for days after the polls close.
Meanwhile, investors widely expect the Federal Reserve to cut rate by 25 basis points at the end of its two-day meeting on Thursday.
Weaker dollar propels copper to two-week peak
This week’s meeting of China’s National People’s Congress standing committee is also in focus as investors look for any further details on stimulus measures.
China’s services activity expanded at the fastest pace in three months in October, helped by early signs that Beijing’s big stimulus push was helping improve business conditions, a private-sector survey showed.
Chin’s economic health is crucial for base metals because it is the largest consumer and heavily relies on these metals for its vast manufacturing sector.
LME aluminium inched up 0.2% to $2,625.5 a ton, nickel climbed 0.5% to $16,090, zinc gained 0.3% at $3,044.50, lead increased 0.2% to $2,036.50 and tin rose 0.2% to $32,220.
SHFE aluminium added 1% at 20,980 yuan a ton, nickel fell 0.4% to 124,320 yuan, zinc lost 0.6% to 24,955 yuan, lead decreased 0.1% to 16,780 yuan and tin rose 0.4% to 262,600 yuan.
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