HANOI- Base metals prices largely fell on Wednesday, as weak economic data in major economies and concerns about demand weighed on prices, following a recent rally driven by hopes of an interest rate cut by the US Federal Reserve.
Three-month copper on the London Metal Exchange (LME) fell 0.8 percent to $9,375.50 per metric ton. The contract hit a near six-week high in the previous session and was on track for a third straight weekly gain.
The most-traded October copper contract on the Shanghai Futures Exchange (SHFE) advanced 0.1 percent to 75,020 yuan ($10,522.18) a ton at the midday break. It hit 75,580 yuan, the highest since July 23, earlier in the session, tracking overnight gain in London.
“Metals have been rising largely with help of a weak dollar, exiting bears and CTA buying. The rise has ignored soft economic data from most parts of the world,” said Sandeep Daga, a director at Metal Intelligence Centre, referring to Commodity Trade Advisor (CTA) investment funds largely driven by computer programs.
A weak dollar, pressured by expectation of a US interest rate cut in September, makes greenback-priced metals cheaper to holders of other currencies.
