BEIJING- Prices of copper, used as a gauge of economic health, drifted lower on Tuesday as the dollar strengthened, with markets awaiting key economic data from the US and China for clues on demand outlook of the red metal.
Three-month copper on the London Metal Exchange was down 0.1 percent at $8,477.50 per metric ton, extending its losses from the previous session.
The dollar index strengthened after Federal Reserve officials said on Monday additional interest rate hikes are likely given that inflation remains persistently high and the labor market is still tight.
A stronger dollar makes it less attractive to buy the greenback-priced commodity.
The most-traded September copper contract on the Shanghai Futures Exchange nudged 0.2 percent lower to 68,830 yuan($9,534.83) per metric ton.
China will release its trade data later in the day and inflation data on Wednesday. Demand from the world’s top metals consumer was slow amid disappointing economic recovery and a traditional summer trade lull.
The US will release its inflation data on Thursday.
LME aluminum lost 0.4 percent at $2,222 a metric ton, tin moved down 0.6 percent to $27,600, zinc shed 0.5 percent to $2,483, lead nudged down 0.3 percent to $2,132, while nickel was up 0.1 percent to $21,130.
