Copper Rises on Lower USD
Copper prices rose as a weaker US dollar supported prices, but mounting concerns about economic growth in top consumer China kept a lid on the market.
Benchmark copper on the London Metal Exchange closed 0.5 per cent higher at $US5,300, after disappointing US retail and producer price data sent the US dollar tumbling to a three and a half week low.
The dip helped copper regain some ground, after it slid in the previous session and in early trading. A weaker currency supports prices by making dollar-denominated metals cheaper for non-US buyers.
"The market has been spooked by primarily focusing on China," said Peter Fertig of Quantitative Commodity Research. "[This gain] is a reaction to yesterday's decline. The exchange rate plays a significant role in explaining the price movement."