Band Siyi Liu and Emily Chow
BEIJING, August 5 (Reuters) – Copper and most other base metals continued to find support on the back of a weaker U.S. dollar on Friday, as July job growth in the U.S. was expected to slow before a closely watched jobs report, due later today.
Three-month copper on the London Metal Exchange CMCU3 rose 0.9% to $7,799.50 per tonne at 0521 GMT.
Copper prices posted a three-day loss earlier this week on weak global factory data and soaring US-China tensions following the House Speaker’s visit to Taiwan. US Representatives, Nancy Pelosi.
The recent rebound was mostly attributed to technical buying and a weaker dollar on signs of an easing labor market.
A weaker dollar means lower costs for commodity buyers using other currencies.
However, overall sentiment remained bearish on concerns over a prolonged interest rate hike by the US Federal Reserve and near-term demand prospects in China, the world’s largest consumer of metals.
“With the likelihood of the Fed raising rates by 50 to 75 basis points on the table, participants are looking to eliminate their exposure to current price volatility risk,” said He Tianyu, copper analyst at CRU Group.
The most traded copper contract in September on the Shanghai Futures Exchange SCFcv1 rose 1.3% to 60,170 yuan ($8,919.23) a ton.
Tin LME CMSN3 gained 0.6% to $24,695 a tonne, zinc CMZN3 rose 1% to $3,484 per ton, aluminum CMAL3 rose 0.4% to $2,411.50 a tonne, while lead CMPB3 stabilized at $2,046.50 per tonne.
Zinc ShFE SZNcv1 jumped 4% to 24,595 yuan per ton, nickel SNIcv1 climbed 2.9% to 178,000 yuan, tin SSNcv1 rose 2.4% to 197,870 yuan per ton, and aluminum SAFcv1 rose 1.9% to 18,535 yuan per ton.
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($1 = 6.7461 Chinese yuan renminbi)
(Reporting by Siyi Liu and Emily Chow, additional reporting by Eric Onstad; Editing by Rashmi Aich and Shounak Dasgupta)
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