Copper gained for a second day in Asia, paring the first weekly loss in a month, as a decline in the dollar increased the appeal of raw materials priced in the U.S. currency.
Three-month copper on the London Metal Exchange rose 0.3 percent to $7,300 a metric ton at 12:46 p.m. in Singapore, extending yesterday’s 0.8 percent increase. The metal used in electrical appliances and construction climbed alongside other commodities including oil and silver, sending the S&P GSCI Commodity Index higher for the first day in four.
"The weaker dollar is supporting prices for now, however it is most likely to be short-lived as the dollar is expected to resume its uptrend given the ongoing concerns about the global economy,” Wang Mingyi, an analyst at Galaxy Futures Co., said from Beijing. "What happens in the stock markets also affects overall sentiment.”
The dollar halted a four-day advance against a basket of six currencies, including the euro and yen, before a report forecast to show growth accelerated in Europe and on speculation Japan will take steps to curb gains in its currency.
Asian equities rose on increased earnings at companies in Singapore and Japan, while stocks in China advanced on the prospect that the government won’t further tighten lending and property curbs given the slowdown in the economy.
Copper is still 1.3 percent lower this week, snapping three weeks of gains, after the Federal Reserve said the U.S. recovery is weakening, European industrial production unexpectedly declined in June, and reports this week showed China’s industrial output, retail sales, new lending, producer prices and money supply grew in July at a slower pace than in June.
Zinc in London rose 0.7 percent to $2,071 a ton, lead climbed 0.9 percent to $2,119 a ton, nickel gained 1.5 percent to $21,750 a ton, and tin advanced 0.5 percent to $20,650 a ton. Aluminum was little changed at $2,165 a ton at 12:52 p.m. in Singapore.