(Updates prices, adds weaker dollar) By Eric Onstad LONDON, Nov 13 (Reuters) - Copper prices rebounded onMonday as traders cancelled short positions in frustration, butgains were capped by uncertainty about economic growth and highinterest rates. Three-month copper on the London Metal Exchange hadgained 1.6% to $8,166 per metric ton by 1700 GMT, having shed1.4% and hit a two-week low on Friday.
U.S. Comex copper futures advanced 2% to $3.66 a lb. "Traders have been playing it from the short side recentlyand they're getting a little frustrated as it has not reallybeen yielding much so we've been seeing some short-covering,"said Ole Hansen, head of commodity strategy at Saxo Bank inCopenhagen. LME copper prices lost steam after hitting a one-month peakof $8,260 a ton last week. "It's a market that's range-bound and where there's not anyaggressive appetite for short-selling, given the fact thatbuyers already started to emerge ahead of the $8,000 level,"Hansen added. Also supporting the metals market was a weaker dollar index amid a flurry of options trading, making commoditiespriced in the U.S. currency less expensive for buyers usingother currencies.
The metals market was still cautious, however, after weakeconomic data last week from China raised concerns over thedemand outlook. Investors will closely monitor a slew of China economic datascheduled to be released this week, including industrial output,urban investment and retail sales for October. "There's persisting concerns of weakness in China and Europeand we're starting to see tentative signs of growth pulse in theUnited States starting to slow," said Kyle Rodda, a financialmarket analyst at Capital.com. More stimulus measures from China are still required tospark a meaningful turnaround to copper prices and broader basemetals in the short- and medium-term, Rodda added. LME aluminium climbed 0.7% to $2,230 a ton, nickel rose 0.8% to $17,390 and tin gained 1.2% to$24,895 while zinc dropped 0.4% to $2,553 and lead lost 0.5% to $2,170.
For the top stories in metals, click (Reporting by Eric OnstadAdditional reporting by Brijesh Patel in Bengaluru; editing byDavid Evans, Chizu Nomiyama and Christina Fincher)
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