NEW DELHI- Copper prices fell slightly on Thursday, easing from near six-week highs, as the US dollar firmed up on economic data that signaled the Federal Reserve will likely wait longer before cutting interest rates.
Three-month copper on the London Metal Exchange (LME) was down 0.4 percent at $8,236 a metric ton.
Meanwhile, the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) edged up 0.1 percent to 67,760 yuan ($9,336.29) a ton.
The dollar drew support from better-than-expected retail sales numbers and more signs of cooling inflation, feeding into the narrative for an economic ‘soft landing’ which would allow the Fed more time before cutting rates.
A stronger greenback makes dollar-priced commodities more expensive for holders of other currencies.
Copper prices had touched a near-six week high on Wednesday after positive industrial production data from top consumer China boosted sentiment, but gains were constrained by weakness in the country’s property sector and a stronger dollar.
“Rising expectations of further stimulus from China provided a further boost to the complex,” ING said in a note.
LME aluminum eased 0.3 percent to $2,227 a ton, nickel fell 0.2 percent to $17,385, zinc eased 1.3 percent to $2,622.50, lead decreased 0.7 percent to $2,229.50 and tin shed 0.5 percent to $25,195.
SHFE aluminum eased 0.4 percent to 18,955 yuan a ton, nickel was down 0.5 percent at 138,400 yuan, zinc declined 0.3 percent to 21,740 yuan, while lead gained 1.6 percent to 16,720 yuan and tin edged down 0.2 percent to 213,260 yuan.
