BEIJING: Copper prices in Shanghai rose on Monday, supported by a weak U.S. dollar and hopes of better demand after top consumer China’s pledged to boost its economy and real estate sector.
The most-traded January copper contract on the Shanghai Futures Exchange added 0.8% to 66,010 yuan a tonne as of 0614 GMT.
The London Metals Exchange is closed on Monday for the Christmas holiday.
The dollar slid against most currencies on Friday as data signalled that the U.S. economy is cooling a bit, reinforcing expectations of smaller interest rate increases from the Federal Reserve and improving investors’ risk appetite.
On Monday, the dollar index slid 0.09% to 104.20. A weaker dollar makes the greenback-priced commodity more attractive for non-dollar buyers.
Raising hopes of policy support, a top advisor to the People’s Bank of China on Saturday called for strengthening of real estate policy in light of sluggish economic growth over the past several years.
Copper edges higher on hopes for better 2023 demand
Meanwhile, a key road for mining transportation in Peru was cleared after days of protests, a government minister said, as the country struggles with political tensions following the ousting and arrest of former President Pedro Castillo.
SHFE aluminium gained 0.4% to 18,695 yuan a tonne, zinc rose 1.6% to 23,515 yuan, nickel was up 0.8% at 218,100 yuan, and tin added 0.5% to 197,500 yuan.