Base metal prices ended higher on Tuesday with aluminium and copper firming on the London Metal Exchange (LME) on support from a weaker dollar and strong energy prices, dealers said. Aluminium ended $56 higher at $2,460.
"It has been a very calm day with very low volumes, except for aluminium, and most trade has been technical," a dealer said. "However, the pace changed...when the dollar weakened and the three most traded minerals of the day: aluminium, copper and zinc all saw a reaction," he added.
The dollar weakened on Tuesday, initially pressured by US economic data, then sold off more aggressively on a think tank report that US interest rates may not go up much more. Around 1600 GMT, the euro was up 0.5 percent on the day at $1.2020, a one-week high.
Analysts said firmer energy prices were supporting base metals. April Brent was up 43 cents at $62.63 a barrel by 1600 GMT. The session high so far was $62.85 and the low $61.83.
Copper gained $40 and closed at $4,920. "I think that we are still very much in a trading range and that some people are pushing it higher to test the upper boundaries of the range," Man Financial analyst Edward Meir said. Zinc traded up $14 to $2,291.
"Zinc needs to consolidate between $2,200 and $2,300," a second trader said, noting that zinc was not ready to retest the recent record high of $2,420.
Lead was $5 higher at the close, landing at $1,180, while others were little changed. Nickel closed at $14,875 and tin was unchanged $7,900/925.
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