NEW DELHI: Copper prices in London rose on Wednesday, tracking weakness in the US dollar and stimulus efforts from top consumer China, although gains were limited due to persisting uncertainty over economic growth from tariffs.
Benchmark copper on the London Metal Exchange (LME) was up 0.4% at $9,556 a metric ton as of 0708 GMT.
The US dollar fell on Wednesday, extending a two-day slide against major peers, making greenback-priced commodities less expensive for buyers holding other currencies.
China cut benchmark lending rates for the first time since October on Tuesday, while major state banks lowered deposit rates as authorities work to ease the monetary policy to help buffer the economy from the impact of the Sino-US trade war.
Last week, US and China agreed to reduce tit-for-tat tariffs and implement a 90-day pause on actions, but there is uncertainty on what will follow after the truce.
“Fears that these tariffs may contribute to a potential US recession could cap gains in copper prices at higher levels,” said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.
Copper rallies to one-month peak on signs of improving demand
“Technically, copper has found strong support at $9,500 per ton, and in the near term, prices are targeting the $9,950 per ton mark, barring any significant negative macroeconomic surprises.”
Among other London metals, aluminium was up 0.5% to $2,483.5 a ton, zinc firmed 0.5% to $2,724, lead gained 0.3% to $1,986 and nickel firmed 0.05% to $15,525.
Tin was down 0.3% to $33,000. The most-traded copper contract on the Shanghai Futures Exchange (SHFE) rose 0.3% to 78,100 yuan ($10,838.94) per ton.
SHFE aluminium was up 0.7% to 20,190 yuan a ton, zinc gained 0.7% to 22,580 yuan, lead was up 0.5% to 16,900 yuan, nickel eased 0.05% to 123,280 yuan, and tin gained 1.1% to 267,730 yuan.
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