Shanghai copper touches more than one-week high, tracking weak dollar

NEW DELHI: Shanghai copper prices hit a more than one-week high on Monday, tracking some weakness in the dollar after the US central bank chief signalled a possible rate cut next month and as demand in top metals consumer China remained upbeat.

The most-traded copper contract on the Shanghai Futures Exchange was up 0.9% at 79,390 yuan ($11,087.68) per metric ton, as of 0334 GMT.

It had earlier touched a peak of 79,480 yuan, the highest since August 13.

The dollar attempted to pull itself up from a four-week low on the euro after a dovish pivot from Federal Reserve Chair Jerome Powell sent it tumbling more than 1% on Friday.

Copper prices drew support after Powell pointed to a possible rate cut at the central bank’s September meeting but stopped short of committing to reducing interest rates.

“A lower interest rate environment typically stimulates economic activity, thereby boosting demand for copper in infrastructure, manufacturing, and energy transition projects,” said Sugandha Sachdeva, founder, SS WealthStreet, a New Delhi-based research firm.

Hopes of stronger seasonal demand in top consumer China lingered and helped prices of the red metal used in power and construction sectors.

Among other metals, SHFE aluminium added 0.4%, nickel was up 0.5%, tin firmed 1.13% and zinc gained 0.67%, while lead advanced 0.7%.

The London Metal Exchange was shut on Monday for Summer Bank holiday.