LONDON – Copper prices edged higher on Friday as the dollar paused after recent gains, while investors awaited a highly-anticipated speech by US Federal Reserve Chair Jerome Powell later in the day.
The speech could reveal plans on when or how fast the world’s biggest economy will reduce stimulus, which would impact the dollar and greenback-priced metals.
Three-month copper on the London Metal Exchange inched up 0.3% to $9,330 a tonne by 07:52 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange closed almost flat at 69,130 yuan ($10,667.39) a tonne.
“Since the start of the COVID-19 pandemic, the negative correlation between copper and the US dollar has strengthened, reaching levels last seen during the 2012 recession,” said Fitch Solutions in a note according to Reuters.
The slowdown in global economic growth momentum, the continued spread of the Delta coronavirus variant, higher supply and weakening Chinese demand will prevent copper from rebounding to its record high hit in May, Fitch Solutions said.
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