Copper edged higher on Thursday, buoyed by a slight pullback in the US dollar and lower inventories, although prices were hemmed in a narrow range as markets in top metals consumer China were closed for the Lunar New Year holidays.
Three-month copper on the London Metal Exchange was up 0.3 percent at $8,218 a metric ton.
The dollar index eased 0.1 percent against its rivals, after hitting a three-month high on Tuesday as traders pushed back bets for a first Federal Reserve rate cut following surprisingly hot US inflation figures.
A weaker US currency makes dollar-priced metals less expensive for holders of other currencies.
Also providing support to copper, LME daily data showed that copper stocks in LME-registered warehouses fell to 133,888 tons as of Feb. 13, the lowest level since September.
Copper, widely used in power and construction, is down more than 4 percent this month on concerns about demand from top consumer China and its property sector in particular.
Asian stocks rose on Thursday, with the Nikkei breaching a new 34-year peak.
Data showed Japan’s economy slipped into recession as it unexpectedly shrank for a second straight quarter on weak domestic demand.
Among other metals, LME aluminum rose 0.2 percent to $2,239.50 a ton, nickel was steady at $16,345, zinc gained 0.5 percent to $2,323 and lead climbed 1.1 percent to $2,039. Tin fell 0.4 percent to $27,370.
