HANOI- Prices of base metals rose on Monday on a softer US dollar, but trading remained thin amid caution around the uncertainty of who will become the next US president.
Three-month copper on the London Metal Exchange (LME) rose 1.3 percent to $9,697.50 per metric ton, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) increased 1.2 percent to 77,380 yuan ($10,907.81) a ton.
The dollar slipped as investors braced for a potential pivot this week for the global economy as the United States chooses a new leader and likely cuts interest rates again.
A softer dollar makes greenback-priced metals cheaper to holders of other currencies. An interest rate cut will also likely help boost economic growth and eventually physical metals demand.
US Democratic candidate Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls and the winner might not be known for days after voting ends.
“Things are likely to be fairly volatile with thin volumes until there is clarity on the US election result. The situation is unusually stark because of the potential difference in terms of tariff and trade policy depending on the victor,” said Guy Wolf, Global Head of Market Analytics at Marex Spectron.
