Weaker Dollar, Supply Shortages Boost Copper Price
Copper prices edged higher on Friday due to a weaker dollar and supply shortages in China. Benchmark three-month copper on the London Metal Exchange rose 0.2% to $14,645 a metric ton.
The increase was modest as investors remained cautious about potential rate hikes that could dampen metals demand. Financial markets have been volatile, with bond markets being affected by inflationary concerns and higher energy prices.
Nitesh Shah, commodity strategist at WisdomTree, said 'Some of those pressure points that we had in the last few days are coming off a bit today.' He also expressed his view that demand for base metals will surprise to the upside.
LME zinc climbed to its strongest level in two weeks before dipping into the red. The premium of LME cash zinc to the three-month contract jumped to $106 a ton, suggesting tightening physical availability.