Copper prices edged higher on Thursday, supported by lingering concerns over low inventories, but gains were limited as markets in top metals consumer China were shut for a week-long holiday and a slide in the US dollar paused.

Three-month copper on the London Metal Exchange rose 0.4% to $9,877.50 a tonne by 0330 GMT.

Fundamentals

• Copper inventories in LME-approved warehouses stood at 84,875 tonnes, down 65% since August.

• Aluminium climbed 1% to $3,014.50 a tonne, rebounding after a 1.5% drop in the previous session.

Copper climbs on low inventories, soft dollar

• Rising geopolitical tensions surrounding Ukraine have fuelled market anxiety about metals supply, including aluminium, as the United States has threatened to hit major producer Russia with economic sanctions.

• The United States will send nearly 3,000 extra troops to Poland and Romania to shield Eastern Europe from a potential spillover from the crisis over the massing of Russian troops near Ukraine, US officials said on Wednesday.

• The U.S dollar found a footing in Asia on Thursday as investors awaited policy decisions and outlook from the Bank of England and the European Central Bank.

• The dollar's softness after recently tumbling from a 19-month peak helped lift copper prices over the previous two sessions, as a weaker US currency makes greenback-denominated metals cheaper for holders of other currencies.