Copper prices rose on Tuesday, as the dollar weakened on bets of interest rate cuts by the US Federal Reserve, making greenback-priced metals cheaper for holders of other currencies.
Three-month copper on the London Metal Exchange was up 0.2 percent at $8,461 per metric ton, while the most-traded February copper contract on the Shanghai Futures Exchange also climbed 0.2 percent to 68,370 yuan ($9,549.82) a ton.
The dollar paused its rally, as traders reaffirmed their bets for a slew of Federal Reserve rate cuts this year on expectations that inflation in the US is easing sufficiently.
“Investors are awaiting the (US) inflation print on Thursday, which we expect will bring more volatility to the base metals complex,” brokerage firm Sucden Financial said in a report.
LME aluminium advanced 0.3 percent to $2,244 a ton, nickel increased 0.4 percent to $16,365, zinc was up 0.6 percent at $2,525, lead was 0.4 percent higher, while tin fell 0.4 percent to $24,400.
SHFE nickel climbed nearly 1 percent to 125,640 yuan a ton, zinc advanced 0.1 percent to 21,280 yuan, lead was up 0.5 percent at 16,195 yuan while aluminium fell 0.4 percent to 19,035 yuan and tin dropped 0.8 percent to 204,280 yuan.
