METALS-Copper retreats on strong dollar, disquiet about global growth

By Reuters / August 24, 2023 / www.kitco.com / Article Link

(Updates prices) By Eric Onstad LONDON, Aug 24 (Reuters) - Copper prices pulled back onThursday after five sessions of gains, as unease surroundinghigh interest rates curbing global growth offset optimism aboutan uptick of demand in top metals consumer China. Three-month copper on the London Metal Exchange (LME) slipped 1.1% to $8,360 a metric ton by 1600 GMT aftertouching its highest since Aug. 10 on Wednesday. U.S. Comex copper futures dropped 1.1% to $3.77 alb. "These are corrective bounces that we're seeing in a fairlyneutral to bearish market, where you buy the dips and sell therallies," said independent consultant Robin Bhar. Copper declined after failing to break through resistance atthe 100-day moving average of $8,469, a technical level used bytraders. Short-covering by computer-driven funds had fuelled thisweek's gains, while arbitrage selling contributed to Thursday'slosses, Al Munro at broker Marex said in a note. "The physical market in copper does look fairly robust, butthe market wants to see more news on China stimulus, which seemsto be coming out in dribs and drabs, but nothing really solid,"Bhar added. Copper prices, however, on the Shanghai Futures Exchange(SHFE) hit a near three-week high amid hopes of a demand pick-upfuelled by policy support and the peak consumption season comingup in China. China's Yangshan copper premium rose to $48 aton, the highest since July 7, indicating rising demand forimported copper. A firmer dollar weighed on metals prices, asinvestors were cautious ahead of the Federal Reserve's JacksonHole symposium. A strong dollar makes commodities priced in the U.S.currency more expensive for buyers using other currencies. The Jackson Hole meeting of global central banks takes placeafter a series of interest rate hikes that have curbed economicgrowth and demand for metals. SHFE lead hit a more than 17-month peak of 16,565yuan a ton on fear of a shortage of readily available inventorythat can be delivered against large short positions. On the LME, lead was 0.5% lower at $2,177 a metricton after earlier touching the strongest since late January. LME aluminium fell 1% to $2,157 a metric ton, nickel dropped 0.6% to $20,840, tin lost 1.4% to$25,755, while zinc rose 0.6% to $2,384.50. For the top stories in metals, click ($1 = 7.2789 yuan) (Reporting by Eric Onstad; Additional reporting by Mai Nguyenin Hanoi; Editing by Josie Kao, Kirsten Donovan)

LME price overview COMEX copper futures All metals news All commodities news Foreign exchange rates SPEED GUIDES )) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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