Copper ticks up as US tech rally, easing rate-hike bets temper dollar surge

Copper prices edged higher on Tuesday, according to Business Recorder, as a rally in US technology stocks and a retreat in bets on a Federal Reserve rate increase were largely cancelled out by a firmer dollar. Benchmark three-month copper on the London Metal Exchange climbed 0.08% to $14,431.5 a metric ton by 0300 GMT, putting it on course for a third straight daily gain. Trading on the Shanghai Futures Exchange was halted for China's National Day, and it will reopen on October 8.

Asian equities also rose on Tuesday, following the Nasdaq's gains the previous day, when the tech-heavy index ended at a record high. The metal, nicknamed Dr Copper, is watched as a signal of worldwide economic health, and it has gained from expected demand tied to AI infrastructure, power grid upgrades and electric vehicles.

Rate traders now put the chance of a Federal Reserve increase at its October meeting at 24%, down from 71% a week earlier, based on the CME's FedWatch tool. Higher borrowing costs can restrain demand for commodities that depend on economic growth, while a stronger US dollar and rising Treasury yields make metals priced in greenbacks dearer for buyers using other currencies. Aluminium gained 0.16%, but it remains more than 17% below the four-year high it reached in June, as supply worries linked to the Gulf region have eased and new capacity is expected in Indonesia.