SHANGHAI: Most base metals rose on Monday, lead by copper, due to a weaker dollar and mild US inflation data that hinted at potential policy easing by the Federal Reserve next year.
The three-month copper on the London Metal Exchange (LME) rose 0.3% to $8,963 per metric ton by 0705 GMT, recovering from Thursday’s 5-week low.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) gained 0.6% to 74,170 yuan ($10,161.81)a ton by the close of Asia afternoon trade session.
A report from the US Commerce Department on Friday showed moderate monthly price increases and the smallest gain in underlying inflation in six months, easing some concerns about the pace of US rate cuts in 2025.
“The synchronized price movements in the base metals sector today indicate that macroeconomic factors are now in control,” a trader said.
Meanwhile, the dollar declined from its two-year high peak last week and remained steady on the day.
A weaker dollar makes it less expensive for other currency holders to buy greenback-priced commodities, supporting prices.
LME aluminium fell 0.1% to $2,532.5 a ton, nickel increased 0.6% to $15,455, zinc climbed 0.9% to $2,998, tin added 1.3% to $29,060 and lead gained 1.1% to $2,002.
SHFE aluminium slid 0.1% to 19,915 yuan a ton, nickel rose 2.1% to 124,960 yuan, zinc climbed 0.3% to 25,025 yuan, lead advanced 1.1% to 17,540 yuan and tin firmed 1.6% to 245,290 yuan.
Comments