Copper Pares First Weekly Gain in Five as Dollar Gains
Copper pared the first weekly climb in five as the dollar strengthened after European policy makers signaled borrowing costs will be kept lower for longer and as investors awaited U.S. employment data.
Metal for delivery in three months on the London Metal Exchange declined as much as 1.3 percent to $6,862.50 a metric ton and was at $6,872 at 10:20 a.m. in Shanghai. The price rose 1.8 percent this week, the most since the week ended May 3.
European Central Bank President Mario Draghi pledged to keep interest rates at a record low for an “extended period” yesterday, after Bank of England chief Mark Carney said increases in market rates weren’t warranted. The Dollar Index, which tracks the greenback against six major peers, jumped 0.8 percent, the most in two weeks. U.S. Labor Department data may show companies added 165,000 positions last month after increasing them by 175,000 in May, according to a Bloomberg survey.
“The strong dollar is adding further pressure on copper amid an already weak demand picture,” Cao Yanghui, an analyst at Nanhua Futures Co., said by phone from Hangzhou. Commodities priced in dollars tend to move counter to the currency.
Copper for delivery in October on the Shanghai Futures Exchange declined 0.6 percent to 49,820 yuan ($8,133) a ton. Metal for delivery in September on the Comex fell 1.4 percent to $3.1310 a pound.
On the LME, nickel and lead dropped, while zinc, tin and aluminum were little changed.
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