LONDON: Copper prices rose in London on Tuesday, with some buying triggered by a weaker dollar and hopes that President-elect Donald Trump’s proposed tariffs would be less aggressive than promised.
Three-month copper on the London Metal Exchange (LME) had risen 0.1% to $9,012.50 per metric ton by 1116 GMT.
The U.S. dollar weakened after a Monday report in the Washington Post that Trump’s aides were exploring plans that would apply tariffs only on sectors seen as critical to U.S. national security. Trump denied the report.
“People are wondering about the Trump situation ahead of the inauguration on Jan. 20. While there was lots of noise about the tariffs yesterday, metals markets got a mildly bullish signal from expectations that the tariffs would not be very severe,” said Dan Smith at Amalgamated Metal Trading (AMT).
He added that AMT’s model for copper, which seeks to replicate algorithmic trading patterns used by computer-driven funds, flipped from bearish to a buy signal.
Copper lifted by softer dollar but uncertainty clouds outlook
While a weaker U.S. currency makes dollar-priced metals more attractive for buyers using other currencies, copper was also supported by a rise in Asian shares, which offset persisting concerns about demand in top metals consumer China.
The most-traded February copper contract on the Shanghai Futures Exchange (SHFE) rose 1% to 74,420 yuan ($10,160) a ton.
LME aluminium was up 0.7% at $2,507 a ton supported by a 16% fall in available aluminium stocks in LME-registered warehouses.
Nickel gained 1.0% to $15,325, zinc fell 0.7% to $2,880, tin gained 1.1% to $29,615 and lead slipped 0.2% to $1,941.50.
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