HANOI- Prices of nonferrous metals mostly rose on Tuesday, supported by a softer dollar and prospects of rate cuts by the US Federal Reserve.
Three-month copper on the London Metal Exchange rose 0.7 percent to $10,210.50 per metric ton, while the most-traded July copper contract on the Shanghai Futures Exchange advanced 0.8 percent to 82,350 yuan ($11,365.52) a ton.
The dollar languished at its lowest since April against the euro and sterling on Tuesday as signs of a softening US economy boosted the case for earlier Federal Reserve interest rate cuts.
A weaker dollar makes greenback-priced metals cheaper to holders of other currencies.
Rate cuts usually help with economic activities and metals’ physical consumption.
Bullish bets on copper’s usage in the world transition into a greener economy as well as its shortage have fueled prices to record highs last month, but the rally in futures prices has paused as physical demand has been dampened.
The usual premium to import copper into top consumer China remained at discount, reflecting weak demand.
The net long positioning of COMEX copper climbed to the highest since February 2021 on May 21, but it has trimmed slightly by May 28, the latest exchange data showed.
