LONDON: Copper prices edged higher on Tuesday on light bargain-hunting after three sessions of declines, but more losses were expected as rising COVID-19 cases threatened the global economy.

Volumes were light as investors waited for results from a meeting this week on China's new five-year plan that is expected to be positive for metals demand.

Three-month copper on the London Metal Exchange was up 0.3% at $6,801.50 a tonne by 1030 GMT, after retreating in recent days from a surge above the $7,000 level last week to its highest in 28 months.

"I think there is more downside for copper, and the biggest risk for metals right now is a stronger dollar due to uncertainty building on many fronts," said Gianclaudio Torlizzi, partner at consultancy T-Commodity in Milan.

"But in the mid- to long-term, whether Trump or Biden is president, the outlook is positive for metals."

The most-traded December copper contract on the Shanghai Futures Exchange closed down 0.5% at 51,650 yuan ($7,705.62) a tonne.

"The biggest factor is macro uncertainty as well as rising COVID-19 cases, which also cast a shadow on the economic recovery," said a Singapore-based copper analyst.

"The US election could add to the risk aversion, while hopes on the stimulus bill (have) also faded."

The discount of cash LME nickel to the three-month contract fell to $32.50 a tonne, the weakest since early September, indicating less availability of metal in LME warehouses.

The net long speculative position in LME aluminium had dipped to 5.2% of open interest as of last Thursday compared to 6.6% on Oct. 19, which was the strongest since April 2018, broker Marex Spectron said in a note.

LME aluminium fell 0.3% to $1,823 a tonne, zinc rose 0.4% to $2,549, lead gained 0.9% to $1,796.50, and nickel was little changed at $15,655.

Tin rose 0.8% to $18,190, after hitting its lowest since Oct. 5 on Monday.