NEW DELHI- Copper prices were little changed on Tuesday as Chinese Lunar New Year holiday weighed on sentiment and traders awaited US inflation data for cues on the Federal Reserve’s interest rate cuts.
Three-month copper on the London Metal Exchange was up 0.6 percent to $8,282.50 a metric ton.
The market expects the US consumer price index (CPI) for January – due to be released later in the day – to give the Fed further confidence that inflation is slowing towards its 2 percent target.
This could determine when US interest rates are cut, which in turn could mean a lower dollar.
A falling US currency makes dollar-priced metals cheaper for holders of other currencies, which could boost demand.
“We have US CPI inflationary data which will no doubt lead to much speculation as to the timing of the first Fed cut,” Al Munro at broker Marex said in a note.
In other metals, LME aluminum gained 0.5 percent to $2,237 a ton, nickel was down 0.03 percent to $16,035, zinc edged 0.9 percent higher to $2,340, while lead rose 0.2 percent to $2,028.50. Tin was up 0.3 percent to $27,390.-Reuters
