Copper set for monthly gain, firms on soft dollar, macro risk-on

Among LME metals, aluminium CMAL3 lost 0.58%, zinc CMZN3 lost 0.54%, lead CMPB3 lost 0.45%, nickel CMNI3 was little changed, down only 0.03% and tin CMSN3 was little changed, up only 0.04%.

Among SHFE metals, aluminium SAFcv1 added 0.19%, zinc SZNcv1 gained 0.69%, lead SPBcv1 lost 1.18%, nickel SNIcv1 added 0.32% and tin SSNcv1 rose 1.86%.

Meanwhile, the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.66% to 105,460 yuan ($15,632.04), notching a 3% increase since the start of the month.

The dollar =USD tumbled overnight, making copper and other greenback-denominated commodities cheaper for buyers using other currencies, offering support.

The red metal, nicknamed Dr Copper for its use as an aggregate for global economic health, was also supported by a broader uptick in risk appetite after the U.S. Federal Reserve held interest rates.

The improvement in risk appetite was "reflected in the sharp rebound in equities yesterday after a tough month," Craig Lang, principal analyst at CRU, said.

Copper was supported earlier in July by good demand in China, falling visible stocks and supply concerns, though that tailed off later.

An uptrend in the Yangshan copper premium SMM-CUYP-CN, which tracks physical demand in main consumer China, paused and new withdrawal requests from LME-registered warehouses MCUSTX-TOTAL faded this week.

This softening, along with Chinese leaders' seeming lack of appetite for economic stimulus and disappointing PMI data this week, "makes copper a toy in the hands of dollar and risk-sentiment in equity markets," Sandeep Daga, head of research at Metal Intelligence Centre, said.

Total copper stocks in SHFE-monitored warehouses CU-STX-SGH were also little changed this week, declining by only 276 tons since last Friday, to 69,336 tons.