Copper prices rose on Tuesday, supported by a weaker dollar and as risk sentiment improved following a temporary suspension of the US debt ceiling to avoid a default.
Three-month copper on the London Metal Exchange rose 0.4 percent to $8,167 a ton while the most-traded July copper contract on the Shanghai Futures Exchange advanced 0.5 percent to 65,220 yuan ($9,435.63) a ton.
The US dollar fell against a basket of major currencies, after President Joe Biden and Republican House Speaker Kevin McCarthy agreed to temporarily suspend the debt ceiling and cap some federal spending in order to prevent a US debt default.
However, the agreement still needs to go through Congress where it could face a rocky path.
A softer dollar made greenback-priced metals cheaper to holders of other currencies.
LME nickel rose 2.4 percent to $21,670 a ton, tin increased 4.2 percent to $25,880 a ton, while aluminum fell 0.3 percent to $2,231.50 a ton, zinc eased 0.3 percent to $2,335.50 a ton and lead lost 0.6 percent to $2,065.50 a ton.
SHFE nickel increased 3.3 percent to 166,770 yuan a ton, tin jumped 4.1 percent to 211,380 yuan a ton, while aluminum eased 0.4 percent to 18,000 yuan a ton and lead dipped 0.2 percent to 15,210 yuan a ton. – Reuters
