LONDON: Copper prices crept higher for a third consecutive session on Friday, bolstered by hopes of U.S. interest rate cuts after a central bank appointment and upbeat economic data in China.
Benchmark three-month LME copper on the London Metal Exchange was up 0.3% at $9,714 a metric ton by 1000 GMT, extending a rebound after touching its lowest in three weeks on July 31.
U.S. President Donald Trump on Thursday announced his pick to fill a vacant seat at the Federal Reserve, boosting hopes of interest rate cuts and weakening the dollar.
A softer dollar makes commodities priced in the U.S. currency less expensive for buyers using other currencies.
“The weaker dollar has been a key driver in August,” said Dan Smith at Commodity Market Analytics.
“You’ve got dollar weakness and China looking like it’s in good shape. So the fundamental side feels like it’s quite positive for the time being.”
Data released on Thursday showed China’s exports beat forecasts in July as manufacturers made the most of a fragile tariff truce between Beijing and Washington to ship goods.
Copper lifted by rate cut hopes, Chile supply worries
The most traded copper contract on the Shanghai Futures Exchange rose 0.1% to 78,490 yuan ($10,929.02) a ton.
Smith said that LME copper was looking potentially bullish in his algorithmic computer models, which seek to replicate fund activity that place buy and sell orders largely on momentum signals.
“I think there’s a chance that next week it will flip back into giving a buy signal on copper, with an upside potentially up towards $10,000,” he said.
On the supply side, investors were watching developments in top copper producer Chile, where Codelco has sought permission to reopen a part of its flagship mine after a fatal accident last week.
Other metals were mixed. LME aluminium rose 0.2% to $2,614.50 a ton, zinc added 0.4% to $2,823.50 and tin was little changed at $33,740 while nickel eased 0.1% to $15,100 and lead was down 0.5% at $2,000.
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