Copper hits a two-week high on weak dollar

Copper prices rose to their highest level in nearly two weeks on Wednesday, buoyed by a weaker dollar amid hopes that inflation is peaking and the pace of interest rate hikes may slow. the central banks.

By 100 GMT, three-month copper on the London Metal Exchange (LME) was up 1.9% at $8,189 a tonne, its highest since November 17.

The dollar index was down ahead of a speech later in the day by the head of the US Federal Reserve, making greenback-priced commodities cheaper for buyers using other currencies.

“Fed Chairman (Jerome) Powell is likely to reiterate the slower pace of rate hikes, so the dollar can take a breather and that’s good news for metals.”said Amelia Xiao Fu of Bank of China International. “But any rebound is likely to be limited because there is still macro pressure on commodities and inflation remains very high.”

The metal, used in construction and energy, hit a nearly five-month high of $8,600 a tonne earlier in the month but eased largely on fears that rising COVID cases in top consumer, China slows growth and, therefore, the demand for metals.

The market was still on edge on Wednesday as fresh protests broke out in China over COVID-19 restrictions, with clashes with riot police in Guangzhou.

In addition, weak Chinese factory data limited gains, as the official Purchasing Managers’ Index (PMI) for the manufacturing sector returned its lowest reading in seven months.

Among other base metals, aluminum on the LME was up 1.9% at $2,426 a tonne; Nickel was up 0.5% at $27,000; zinc rose 1.1% to US$2,968; lead added 0.5% to $2,145; and tin was up 0.9% at $23,000.