NEW DELHI — Copper prices in London rose on Wednesday, tracking weakness in the US dollar and stimulus efforts from top consumer China, although gains were limited due to persisting uncertainty over economic growth from tariffs.
Benchmark copper on the London Metal Exchange (LME) was up 0.5 percent at $9,570.5 a metric ton.
The US dollar edged lower on Wednesday, extending a two-day slide against major peers, making greenback-priced commodities less expensive for buyers holding other currencies. USD/
China cut benchmark lending rates for the first time since October on Tuesday, while major state banks lowered deposit rates as authorities work to ease monetary policy to help buffer the economy from the impact of the Sino-US trade war.
Last week, US and China agreed to reduce tit-for-tat tariffs and implement a 90-day pause on actions, but there is uncertainty on what will follow after the truce.
“Fears that these tariffs may contribute to a potential US recession could cap gains in copper prices at higher levels,” said Sugandha Sachdeva, founder of SS Wealth Street, a New Delhi-based research firm.
“Technically, copper has found strong support at $9,500 per ton, and in the near term, prices are targeting the $9,950 per ton mark, barring any significant negative macroeconomic surprises.”
Among other London metals, aluminum was up 0.7 percent to $2,488.5 a ton, zinc firmed 0.5 percent to $2,725, lead gained 0.3 percent to $1,986.5 and nickel was down 0.1 percent to $15,500. Tin was largely flat at $33,100.
