Copper prices in London were on track on Monday for their best monthly performances since January on prospects of further stimulus in top consumer China and that the US Federal Reserve will pause rate hikes for the year.
Three-month copper on the London Metal Exchange was up 0.1 percent at $8,671 per metric ton. On a monthly basis, the contract was up 4.3 percent.
The most-traded September copper contract on the Shanghai Futures Exchange increased 1 percent to 69,530 yuan ($9,729.24) per metric ton. It was up 3.6 percent on a monthly basis, the second straight month of gains.
US annual inflation logged its smallest increase in more than two years in June, raising hopes that the Fed is close to ending its interest rate-hike cycle, which could potentially halt a dollar rally that has made greenback-priced metals pricier for holders of other currencies.
The dollar was headed for a monthly loss.
Pledges from the Chinese authorities to boost the country’s troubled property sector – which accounts for a vast amount of metals consumption – have also been fueling bullish sentiment in the metals market.
“Any support for the property sector will be seen as positive for demand for copper,” said ANZ analysts in a report. – Reuters
