SHANGHAI- Most base metals, including copper which had hit a one-month high last week, declined due to the strength of the dollar and uncertainties related to potential tariffs that could be introduced by US President-elect Donald Trump.
Three-month copper on the London Metal Exchange (LME) slid 0.3 percent to $9,159 a metric ton.
The dollar starts a crucial week, lingering near a peak not seen in more than two years as Trump makes his return to the White House, with an inaugural address that investors are eagerly awaiting to analyze for clues about his immediate policy plans.
The dollar index was last at 109.21 – slightly down from a 26-month high of 110.17 touched last week.
A stronger dollar makes greenback-priced commodities more expensive for holders of other currencies.
Currently, we are just waiting for Donald Trump’s inauguration and hopefully there’ll be clarity on the incoming administration’s policies soon,” a trader said.