Copper prices rose on Tuesday, extending overnight gains, supported by a softer U.S. dollar and as investors shifted their focus back to the overall positive outlook for global metals demand.
Three-month copper on the London Metal Exchange CMCU3 was up 0.7% at $10,021 a tonne by 0206 GMT.
London copper closed below $10,000 a tonne in the last two sessions amid a sell-off in industrial metals and has fallen more than 6% since touching a record high of $10,747.50 a tonne earlier this month.
In Shanghai, copper SCFcv1 rose 1.1% to 72,520 yuan($11,307.22) a tonne.
The dollar was broadly weaker, as softer-than-expected U.S. data and dovish comments from Fed speakers supported the view that any policy tightening is not happening any time soon as they allayed investor fears about inflation.
* A weaker U.S. currency makes greenback-denominated metals cheaper for holders of other currencies, which could potentially boost demand.
* Prices of copper and other base metals fell last week and extended their losses early on Monday, after China’s warning against hoarders and speculators in a bid to cool a blistering rally in prices of industrial commodities.
* Asian shares climbed in early trade on Tuesday, tracking a Wall Street rally overnight, while the dollar held near a four-month low as investors tempered fears about inflation-driven rate hikes.
Source: Reuters (Reporting by Enrico Dela Cruz in Manila; Editing by Ramakrishnan M.)