Three-month copper on the London Metal Exchange (LME) was up 0.59% at $8,852 a tonne
Copper prices touched a one-week high on Tuesday as a softer U.S. dollar lent support, although further gains were likely to be capped ahead of key U.S. inflation data.
Three-month copper on the London Metal Exchange (LME) was up 0.59% at $8,852 a tonne by 0925 GMT, after hitting $8,881.50 earlier, its highest since April 4.
Prices had declined 1.5% last week after weak U.S. economic data fueled fears of a recession.
The U.S. dollar gave back the previous day’s advances against the euro and pound but held some gains against the yen on Tuesday as traders’ attention turned to U.S. inflation data due on Wednesday for signs of how close U.S. rates are to peaking.
“If U.S. inflation data this week is stronger than expected, further downside risk to prices persists,” analysts at National Australia Bank Limited said in a research note.
A weaker dollar is supportive as it makes dollar-priced metals cheaper for buyers holding other currencies.
Among other metals, LME aluminium eased 0.24% at $2,328 a tonne, tin fell 1.43% to $23,960, zinc fell 0.18% at $2,774, nickel was up 2.63% at $23,400, while lead was up 0.14% at $2,098.50.
Meanwhile, China’s consumer inflation in March hit the slowest pace since September 2021, driven by falling food prices, official data showed on Tuesday, suggesting demand weakness persists amid an uneven economic recovery.
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