Copper ticks up as US tech rally, easing rate-hike bets temper dollar surge
XLB•Copper rose 0.08% to $14,431.5 a metric ton, as a US tech rally and reduced bets on an October Federal Reserve rate hike were largely offset by a stronger dollar.
1. Copper edges higher
Benchmark three-month copper on the London Metal Exchange was up 0.08% at $14,431.5 a metric ton by 0300 GMT and was on track for a third consecutive daily gain. The Shanghai Futures Exchange was closed for China's National Day and was set to reopen October 8.
2. Rate bets and dollar
Traders priced in a 24% chance of a Federal Reserve rate hike at its October meeting, down from 71% a week earlier. A stronger dollar, supported by rising U.S. Treasury yields, weighed on dollar-denominated commodities by making them more expensive for buyers using other currencies.
3. Other metals move
Aluminium gained 0.16%, while zinc dipped 0.08%, lead fell 0.03%, nickel lost 0.44% and tin was steady. Aluminium prices have fallen more than 17% since reaching a four-year high in June; Indonesia exported more than 150,000 tons of primary and unwrought alloyed aluminium in August, over three times the year-earlier amount.
