Copper and most other industrial metals rose on Monday as a weaker U.S. dollar boosted the appeal of the greenback-priced metals, with sentiment aided by gains in the commodities markets on hopes of a recovery in the global economy.
Three-month copper on the London Metal Exchange climbed 1.9% to $7,910 a tonne by 0716 GMT, while the most-traded February copper contract on the Shanghai Futures Exchange ended up 0.3% to 58,160 yuan ($9,001.01) a tonne.
LME nickel jumped as much as 5% to $17,450 a tonne, a two-week high, while zinc advanced 1.1% to $2,781.50 a tonne. ShFE nickel climbed 3.1% to 128,210 yuan a tonne while ShFE lead was up 2% to 15,045 yuan a tonne.
“The end of year rebalancing — selling the winners, buying the laggards — is over. Metals are also repricing themselves higher after taking the cue from bitcoin. They are also supported by a weaker dollar,” a Singapore-based trader said.
The U.S. dollar kickstarted the new year by slipping broadly, while bitcoin hovered near a record high.
Other commodities, ranging from iron ore to oil and grains, also gained as optimism from vaccine rollouts and global fiscal support underpinned their prices.
“However, I won’t be chasing this rally...as the GSCI and BCOM indices are due to start their rebalancing in the next five days when they will be selling copper,” the trader said, referring to the S&P/Goldman Sachs Commodity Index and the Bloomberg Commodity Index.
Source: Reuters |
