NEW DELHI- Copper prices eased on Monday, pressured by a stronger dollar, shrugging off signals of optimism in China with latest economic data showing a slight uptick.
Three-month copper on the London Metal Exchange (LME) edged lower 0.2 percent to $8,991 per metric ton while the most-traded January copper contract on the Shanghai Futures Exchange (SHFE) was up 0.05 percent to 73,810 yuan ($10,166.53) a ton.
The dollar crept higher on Monday in what is shaping up to be a critical week for the prospect of US interest rate cuts, while the yen’s recent rebound was underpinned by wagers on rising rates at home.
A stronger dollar makes greenback-priced metals costlier to holders of other currencies.
“We highlight that the market is poised for a period of significant price volatility, with anticipated US dollar strength and shifts in trade policies following a Trump victory acting as major headwinds, while the outlook remains heavily contingent upon China’s economic momentum,” said BMI, a unit of Fitch Solutions. China’s factory activity expanded modestly for a second straight month in November, an official survey showed, adding to a string of recent data suggesting a blitz of stimulus is finally trickling through the world’s second-largest economy just as Donald Trump ramps up his trade threats.
