London- Copper prices touched a four-week high on optimism about an economic rebound in top consumer China, but gains were capped after the dollar strengthened on firm US jobs data.
Three-month copper on the London Metal Exchange was up 0.9 percent at $8,502 per metric ton after hitting $8,599, the highest level since Aug. 4. It has climbed 3.6 percent since Aug. 17.
US nonfarm payrolls increased by 187,000 jobs last month to beat analysts’ forecast of 170,000 jobs, data showed on Friday.
The dollar index erased earlier losses and strengthened due to the strong labor market, despite some signs of deterioration.
A firmer dollar makes commodities priced in the US currency more expensive for buyers using other currencies.
The jump in prices earlier in the session was driven by China announcing measures to support its property market and as data showed expansion in China’s manufacturing sector.
“The rally in prices this morning is being driven by optimism that China’s demand for metals is likely to have reached a bottom,” Natalie Scott-Gray, a base metals analyst with StoneX told Reuters.
Scott-Gray cited surveys of purchasing managers (PMIs) in China’s dominant manufacturing sector. – Reuters
