Copper prices climbed on Thursday to their highest in nearly six weeks, as lower-than-expected US inflation eased worries of aggressive rate hikes that could hurt growth and metals demand.
Three-month copper on the London Metal Exchange rose 0.1 percent to $8,090 a ton, while the most-traded August copper contract on the Shanghai Futures Exchange rose 1.3 percent to 62,130 yuan ($9,215.37) a ton.
Both contracts hit their highest since July 1 earlier in the session.
US consumer prices did not rise in July compared with economists’ expectation of a 0.2 percent gain, a report that could allow the Federal Reserve to dial down the size of interest rate hikes in September.
However, US policymakers pushed back on market expectation for rate cuts next year and assured they would continue to tighten monetary policy until price pressures are fully broken.
ShFE nickel jumped 5.3 percent to 176,490 yuan a ton, zinc advanced 2.3 percent to 25,320 yuan a ton and tin increased 2.3 percent to 200,500 yuan a ton. – Reuters
