SHANGHAI: Copper prices rebounded on Friday from a five-week low touched in the last session, as most base metals gained on positive economic indicators from the United States.
Gains were however limited by a stronger US dollar and a hawkish Federal Reserve rate outlook.
Three-month copper on the London Metal Exchange (LME) rose 0.4% to $8,917 per metric ton by 0423 GMT.
On Thursday, copper fell to $8,869, its lowest level since Nov. 14, pressured by a firmer dollar. Data released on Thursday showed that fewer-than-expected Americans filed new applications last week for jobless benefits.
Meanwhile, the US economy grew at a 3.1% annualised pace in the third quarter ended Sept. 30, driven by robust consumer spending.
The economy was previously reported to have expanded at a 2.8% pace.
The dollar was poised to end the week on a firm note. It was hovering near a two-year high, supported by a hawkish US rate outlook.
A stronger dollar makes it more expensive for other currency holders to buy greenback-priced commodities.
On Wednesday, the Fed cut interest rates by 25 basis points and Chair Jerome Powell said future reductions hinge on further progress in lowering stubbornly high inflation, hinting at economic changes under the incoming Donald Trump administration.
LME aluminium gained 0.6% to $2,521 a ton, zinc rose 0.7% to $2,987, tin advanced 0.8% to $28,620, nickel added 0.6% to $15,205, and lead climbed 0.1% to $1,974.
Copper hits 5-week low on selling sparked by dollar jump
The most-traded January copper contract on the Shanghai Futures Exchange had shed 0.2% to 73,830 yuan ($10,092.07) a ton by the close of morning session.
SHFE aluminium added 0.6% to 19,975 yuan a ton, tin declined 0.2% to 242,830 yuan, nickel dropped 0.7% to 122,720 yuan, zinc remained relatively unchanged at 25,195 yuan and lead shed 0.1% to 17,400 yuan.
Source: Brecorder
