By Mai Nguyen
New Delhi: Copper advanced on Friday as improved risk sentiment and a stable dollar lifted prices of metals, while an extended policy easing in the European Union lent support.
Three-month copper on the London Metal Exchange rose 0.8% to $9,516 a tonne by 0512 GMT while the most-traded August copper contract on the Shanghai Futures Exchange advanced 1.7% to 69,810 yuan a tonne.
Both the contracts for copper, which is often used as a gauge of global economic health, are set to gain this week.
“We saw a slight bounce in equity markets yesterday as upbeat earnings help overcome worries about growth and together with a stable dollar it means metals can trade a bit more on their own fundamentals,” said commodities broker Anna Stablum of Marex Spectron.
“It is macroeconomic headwinds that are giving them a tough time to rally. Microeconomic for most of these metals look solid… thus lead, nickel and tin are performing well,” she added.
The European Central Bank’s pledge to keep interest rates at record lows for longer to boost recovery and a sluggish inflation also lent support.
“(This) might add to bullish sentiment. Loose monetary policy is a big reason why we are up here in the first place,” Stablum said.