London copper prices rose to their highest in nearly eight weeks on a softer dollar and hopes of improving demand after Chinese officials promised support to the country’s property sector.
Three-month copper on the London Metal Exchange advanced 0.8% to $8,335 per metric ton by 0331 GMT, having hit %8,339.50 earlier in the session, the highest since Sept. 29.
The most-traded December copper contract on the Shanghai Futures Exchange rose 0.3% to 67,980 yuan ($9,427.13) a ton. Earlier in the session, it hit 68,030 yuan, a level unseen since Sept. 25.
The dollar slid to a two-month low as traders reaffirmed their belief that US rates have peaked and turned their attention to when the Federal Reserve could begin cutting rates.
A softer dollar makes base metals prices traded in the greenback relatively cheaper to holders of other currencies.
Meanwhile, China’s central bank and financial regulators pledged on Friday to ensure financing support for the property sector and to work together to resolve local government debt risks.
The real estate sector accounts for a large portion of consumption for copper and other base metals.
Copper higher on soft dollar, mine supply fears
A boost to the property sector is likely to support metals demand.
LME aluminium advanced 1.3% to $2,235.50 a ton, nickel increased 0.5% to $16,980, zinc climbed 1.1% to $2,582, tin edged up 0.1% to $24,865, while lead fell 0.1% to $2,292.
SHFE aluminium increased 0.7% to 19,010 yuan a ton, lead advanced 0.6% to 17,055 yuan, while nickel fell 1.1% to 135,310 yuan, tin 1.9% to 209,240 yuan and zinc was almost flat at 21,440 yuan.
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