METALS-Copper climbs to one-week high as dollar slides

By Kitco News / August 21, 2018 / www.kitco.com / Article Link


* China's growth-supporting moves to help copper
* Strong resistance at $6,140 (Updates with closing prices)By Pratima DesaiLONDON, Aug 21 (Reuters) - Copper climbed to one-week highson Tuesday as funds cut bets on lower prices and the dollarretreated from recent highs as the market waited for talks onthe U.S.-Chinese trade dispute.Benchmark copper on the London Metal Exchange endedup 0.9 percent at $6,045 a tonne. It earlier hit $6,076, itshighest since Aug. 21.


The metal used in power and construction is up nearly 5percent since hitting a 14-month low at $5,773 last Wednesday."The dollar has come off and there is some easing oftensions between China and the United States," a senior metalstrader said. "If Chinese demand holds up then copper will stayfirm around these levels, possibly a little higher."


DOLLAR: A lower U.S. currency makes dollar-denominatedcommodities cheaper for holders of other currencies, whichpotentially would boost demand. This relationship is used byfunds to generate buy and sell signals from numerical models.TRADE: U.S. President Donald Trump said he does not expectmuch progress from trade talks with China this week inWashington and that he had "no time frame" for ending thedispute, which threatens to impose tariffs on virtually allgoods traded between the world's two largest economies. CHINA: China is the world's largest copper consumer,accounting for nearly half of global demand estimated at 24million tonnes this year. The United States accounts for about 8percent of global demand.GROWTH: Analysts say moves by China to support growth andinvestment should sustain growth in copper demand. Clues willcome from surveys of purchasing managers in the manufacturingsector at the end of the month.INFRASTRUCTURE: China almost quadrupled the value offixed-asset investment projects approved in July from theprevious month as Beijing looked to accelerate infrastructurespending to stabilise the cooling economy. SUPPORT: China's banking and insurance regulator has askedfinancial institutions to give more support to infrastructureinvestment, importers and exporters, and creditworthy companiesexperiencing temporary problems. TECHNICALS: Copper price resistance sits at $6,140 a tonne,where the 21-day moving average and Fibonacci retracement levelhave converged. First support comes in at $6,000 followed by$5,773, last week's low.PRICES: Aluminium ended little changed at $2,054.5 atonne, zinc climbed 3.6 percent to $2,462, lead added 1.8 percent to $2,008, tin rose 1.2 percent to$19,030 and nickel was flat at $13,560.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima DesaiAdditional reporting by Tom DalyEditing by Edmund Blair and David Evans)


LME price overview COMEX copper futures Base metals news All metals news All commodities news Metals diary 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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