HANOI – London copper prices crept towards the psychological level of $8,000 a ton on Tuesday, as a weaker dollar made greenback-priced metals cheaper to holders of other currencies.
Three-month copper on the London Metal Exchange advanced 0.9 percent to $7,928 a ton.
The contract surpassed $8,000 a ton last month, but quickly retreated.
“We are only 70 dollars away so yes we can be at $8,000 soon. It’s all about more money.
If Democrats get Senate tonight, I guess we will move even higher,” said commodities broker Anna Stablum of Marex Spectron.
Investors on Tuesday were paying attention to elections in the US state of Georgia which will decide whether the Democrats can take over the Senate – a change that could boost stimulus in the world’s largest economy.
Copper is often used as a gauge of global economic health.
Meanwhile, the US dollar slipped after the central bank in China, the world’s biggest metal consumer, lifted its official yuan midpoint by the most since it abandoned a decade-old peg against the dollar in 2005.
The most-traded February copper contract on the Shanghai Futures Exchange ended 0.1 percent higher at 58,110 yuan ($8,996.33) a ton.