LONDON- Copper prices were steady on Friday on optimism about more government support for the economy of top metals consumer China and as some investors bet that prices bottomed out earlier this month.
Three-month copper on the London Metal Exchange was little changed at $9,245 per ton after rising earlier in the session to $9,382.
Copper and other base metals pared gains after US inflation data reinforced expectations that the Federal Reserve will likely cut interest rates by a smaller 25 basis points next month.
That pushed the dollar index higher, making commodities priced in the US currency more expensive for buyers using other currencies.
Earlier in the session, prices perked up after a report said that China is considering allowing homeowners to refinance as much as $5.4 trillion in mortgages to reduce borrowing costs.
“This could help support consumer confidence, which has been on the weak side, so that could boost consumption among households,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
China has been stepping up its efforts to support its troubled property sector, a major source of demand for industrial metals.
