Copper tiptoes higher on weaker dollar, tight Chinese supplies

Business Recorder reported that three-month copper on the London Metal Exchange edged up 0.2% to $14,645 per metric ton in Friday's official session. The price was 0.8% above where it closed the previous week. Support came from a softer US currency and shortages in China, although traders remained cautious about possible further interest rate increases that might reduce demand for metals.

The dollar slipped back after reaching its highest level in almost two months, while oil prices eased. That mix left dollar-denominated metals less expensive for purchasers holding other currencies. Bond markets, under pressure from inflation worries tied to higher energy costs, have also unsettled industrial metals. Volumes were light because the Shanghai Futures Exchange remained shut for a holiday on Friday.

WisdomTree commodity strategist Nitesh Shah said recent pressure points were easing, though investors were becoming more risk averse. In his view, markets had probably priced in too many rate hikes, so base metal demand could come in stronger than expected. BNP Paribas head of metals strategy David Wilson pointed to falling visible stocks in China and smelters cutting output for maintenance, describing the Chinese market as quite tight.