Copper gains as soft dollar set to save 10 week streak

SINGAPORE: Copper prices edged up on Friday, set to end the week higher, supported by the US dollar’s overnight plunge which offset pressure from recedingsupply fears.

Benchmark three-month copper on the London Metal Exchange was up 0.06% at $14,342 a metric ton by 0300 GMT.

That placed the metal on track to edge up 0.03% this week, which would mark a tenth straight weekly gain. The most-traded copper contract on the Shanghai Futures Exchange rose 0.58% to 109,170 yuan ($16,254.73) a ton.

The dollar slumped overnight on fading rate hike expectations after comments by Fed Governor Christopher Waller.

The CME’s Fedwatch tool shows rate traders pricing in even odds of a September rate hike, from a nearlytwo-in-three chance a day earlier.

A cheaper US dollar can support greenback-denominated commodities by making them more affordable for buyers using other currencies, and lower rates can support industrial metals by stimulating economic activity.

It was a choppy week for copper, weigheddownin trading earlier in the week by resurgent interest rate fears, and by market perceptions of less physical tightness of supply.

LME copper’s cash-to-three-month spread narrowed to $57.93 a ton of backwardation, from $171.40 a ton a week earlier.

Elsewhere, aluminium edged up to near a three-week high on the LME on supply tightness and availability concerns.

LME aluminium was up 0.2%, on track to end the week 2.16% higher.

The cash-to-three month spread flipped into a slight backwardation on Thursday, signalling tight availability.

The SHFE aluminium price added 0.25% after paring back earlier gains, which saw it touch 24,510 yuan a ton, its highest since June 4.

Among LME metals, zinc was little changed, up only 0.01%, lead ticked 0.11% higher, nickel added 0.17% and tin dipped 0.27%.

Among SHFE metals, zinc gained 0.54%, lead was little changed, down only 0.03%, nickel lost 0.57% and tin gained 0.67%.