London base metals extend gains on weaker dollar ahead of U.S. jobs report
BEIJING — Copper and most other base metals prices in London extended gains on Friday, buoyed by weaker dollar ahead of the release of U.S. monthly job report that was expected to show a slower job growth in July.
Three-month copper on the London Metal Exchange rose 0.6% to $7,772.50 a tonne as of 0159 GMT.
Copper price recorded a three-day loss earlier this week on weak global factory data and worries on flaring U.S.-China tensions with U.S. house speaker Nancy Pelosi’s visit to Taiwan.
While the recent rebound was primarily attributed to technical buying, overall sentiment remained bearish alongside concerns over the performance of global economy.
The number of Americans filing new claims for unemployment benefits increased last week. Investors are now awaiting the U.S. non-farm payrolls report to be released later in the day.
Signs of softening labor market weighed on the dollar, with the greenback posting its biggest fall in two weeks.
Weaker dollar means cheaper costs for commodity buyers of other currencies, which supports prices.
The most-traded September copper contract on the Shanghai Futures Exchange gained 0.5% t0 59,730 yuan ($8,855.45) a tonne.
A group of Chinese companies are investigating why a commodities storage site in the northern city Qinhuangdao is holding only one third of the 300,000 tons copper concentrate, worth 5 billion yuan, they were financing, Bloomberg reported on Thursday.
LME tin climbed 0.6% to $24,690 a tonne, zinc moved up 0.7% to $3,476 a tonne, while aluminum nudged up 0.3% to $2,409 a tonne, lead dipped 0.4% to $2,038 a tonne.
ShFE zinc jumped 3.3% to 24,420 yuan a tonne, nickel gained 1.6% to 175,780 yuan, tin rose 1.9% to 196,940 yuan a tonne, and aluminum was up 1.4% to 18,465 yuan a tonne.
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($1 = 6.7450 Chinese yuan renminbi) (Reporting by Siyi Liu and Emily Chow, Additional reporting by Eric Onstad; Editing by Rashmi Aich)