SHANGHAI- Prices of most base metals rose on Thursday, helped by a weaker dollar as soft US core inflation data raised hopes that the Federal Reserve could cut interest rates further.
The dollar index paused its rally following the release of core consumer price index data. It was last at 108.98 – a 1.08 percent retreat from the 26-month high of 110.17 touched on Monday.
A weaker dollar makes greenback-priced commodities cheaper for holders of other currencies.
Excluding volatile food and energy components, core CPI increased 3.2 percent on an annual basis, compared with an expected 3.3 percent rise.
Traders of interest-rate futures now expect the Fed to cut rates twice by the end of this year, with the first reduction to come in June.
Three-month aluminum on the London Metal Exchange (LME) rose 0.6 percent to $2,618 a metric ton, bolstered by the European Commission’s plan to ban Russian aluminum.
The European Commission intends to propose a ban on imports of Russian primary aluminum in its 16th package of sanctions against Russia over its invasion of Ukraine, European Union diplomats said on Tuesday.
“Russian shipments of the metal to Europe have already fallen due to widespread self-sanctioning by manufacturers. Any further restrictions would likely see only a limited impact on the market,” ANZ Research said in a note.
LME copper rose 0.5 percent to $9,214, tin remained flat at $29,590, nickel was unchanged at $15,855, lead added 0.4 percent to $1,943.5 and zinc gained 0.2 percent to $2,868.