LONDON- Copper prices rose to an almost four-month high on Friday, on track for a third week of consecutive growth, due to better-than-expected data from top consumer China, tighter supply, a decline of exchange inventories and a weaker dollar.
Three-month copper on the London Metal Exchange was up 2.1 percent at $8,638 per metric ton, its highest since Aug. 4.
The private Caixin survey showed China’s factory activity unexpectedly expanded in November as orders rose, even though the official November purchasing managers’ index (PMI) fell.
“Although the official PMI data points to Chinese industry still contracting, the Caixin data at above 50 indicates that the stimulus that the Chinese government has been offering is working,” said Nitesh Shah, head of commodities and macroeconomic research at WisdomTree in Europe.
Providing further support to copper and other dollar-priced metals,the US currency fell on Friday as Federal Reserve Chair Jerome Powell struck a cautious tone on further interest rate moves, suggesting the US central bank is likely done with its tightening cycle.
“Looking forward to 2024, copper prices will be supported amid a weaker US dollar on the back of US Fed monetary policy easing,” said Ewa Manthey, commodities strategist at ING. – Reuters
