NEW DELHI: Copper prices were little changed on Tuesday as the Chinese Lunar New Year holiday weighed on sentiment and traders awaited U.S. inflation data for cues on the Federal Reserve’s interest rate cuts.
Three-month copper on the London Metal Exchange was up 0.7% at $8,291.50 a metric ton by 0333 GMT.
The market expects the U.S. consumer price index (CPI) for January - due to be released later in the day - to give the Fed further confidence that inflation is slowing towards its 2% target.
This could determine when U.S. interest rates are cut, which in turn could mean a lower dollar.
A falling U.S. currency makes dollar-priced metals cheaper for holders of other currencies, which could boost demand.
Copper edges lower; China closed for New Year
“We have U.S. CPI inflationary data which will no doubt lead to much speculation as to the timing of the first Fed cut,” Al Munro at broker Marex said in a note.
In other metals, LME aluminium gained 0.5% to $2,239 a ton, nickel was up 0.1% at $16,060, zinc was 1% higher at $2,343, while lead rose 0.4% to $2,031. Tin was up 0.1% at $27,315.
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