US Dollar Weakness Boosts Copper Prices Amid Rising LME Inventories

Copper prices received support from US dollar weakness, according to SMM's copper morning comment. Overnight, the London Metal Exchange (LME) copper price closed up 0.64% at $14,051.5/mt, after reaching a high of $14,058/mt.

Trading volume reached 23,000 lots, and open interest stood at 261,000 lots, down 8,415 lots from the previous trading day. This reflects a reduction in bearish positions, SMM noted.

The Shanghai Futures Exchange (SHFE) copper price also saw an increase of 0.23% to settle at 107,230 yuan/mt, with trading volume reaching 25,000 lots and open interest standing at 171,000 lots, down 4,636 lots from the previous day.

The US Treasury Department's announcement to double the size of its long-term bond repurchase operations pushed the US dollar lower, supporting copper prices. However, LME inventories continued to rise, capping the upside for copper prices.