LONDON- Copper dipped on Friday as investors questioned whether attempts by top metals consumer China to boost its economy would be effective, though a softer dollar helped it hold on track for its biggest weekly gain in more than two months.
Three-month copper on the London Metal Exchange (LME) fell 0.3 percent to $8,543 per metric ton. On a weekly basis it has risen 2.4 percent, and is on course for its strongest week since mid November.
China’s central bank this week announced a deep cut in the amount of cash banks must hold as reserves, and a Bloomberg report said Chinese authorities were considering mobilizing about 2 trillion yuan to stabilize a slumping stock market.
A struggling property market and low consumer confidence might not be bolstered by the measures announced this week, said Julius Baer commodity analyst Carsten Menke.
“There is bearish sentiment across metals, with a challenging short-term outlook, as China is unlikely to find a secret to U-turn the economy,” Menke said.
Falls however were limited by weakness in the US dollar, making metals cheaper for buyers using other currencies.
