Base metals rise in tight range, gains capped by strong dollar

24 ธ.ค. 202402:32 UTC

Most base metals rose within tight ranges on Tuesday but strength in the dollar, driven by the prospect of prolonged higher U.S. interest rates, limited their gains.

A stronger dollar makes it more expensive for other currency holders to buy greenback-priced commodities, thus keeping metals prices under pressure. The dollar's strength also kept other currencies near milestone lows.

Despite the downward pressure on copper from the strong dollar, the metal has found support from robust downstream demand.

Three-month copper on the London Metal Exchange (LME) HG1! rose 0.2% to $8,926 per metric ton by 0145 GMT.

"On the copper demand side in China, the recent high downstream operation rates have been supporting copper consumption. However, there are signs of seasonal sluggishness in winter," analysts at Jinrui Futures said in a note.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) HG1! slid 0.2% to 73,870 yuan ($10,120.98)a ton.

LME aluminium (CMAl3) was relatively unchanged at $2,527 a ton, nickel NICKEL1! increased 0.5% to $15,365, zinc ZNC1! climbed 0.4% to $2,996, tin FTIN1! was up 0.3% at $28,635, while lead LEAD1! was 0.1% higher at $1,988.

SHFE aluminium ALI1! decreased 0.8% to 19,800 yuan a ton, nickel NICKEL1! rose 0.1% to 124,100 yuan, zinc ZNC1! climbed 0.6% to 25,030 yuan, lead LEAD1! slid 0.3% to 17,445 yuan, and tin FTIN1! edged down 0.6% at 242,240 yuan.