Copper prices gain to six-day high on weaker greenback, US spending hopes

SYDNEY — London copper climbed to a six-day high on Monday, buoyed by a weaker dollar and as US President Donald J. Trump reiterated plans to spend big on infrastructure.

In his inauguration speech on Friday, Mr. Trump promised to generate new investments to rebuild highways, bridges, airports and other infrastructure.

However, he did not go into specifics and there was no mention of plans to outlay $1 trillion in spending over a 10-year period that accompanied his November victory speech.

“We are going to need some evidence that this wasn’t just rhetoric to get elected if this is to be long- term factor in the market,” said a commodities trader in Sydney who declined to be identified as he was not authorized to speak with media.

Three- month London Metal Exchange (LME) copper had risen 1.60% to $5,840 a ton by 0235 GMT, extending gains from the previous session, while the most-traded copper contract on the Shanghai Futures Exchange (ShFE) was up 1.40% at ¥47,100 ($6,883) a ton.

Copper was also supported as the US dollar skidded in Asian trade on Monday, with the euro hitting its highest levels in more than a month as investors locked in gains on the greenback’s recent rise.

A weaker dollar makes it cheaper to buy greenback-priced commodities for holders of other currencies.

Meanwhile, the Lunar New Year holiday, starting Jan. 27, is expected to subdue metals demand this month as Chinese factories close, sometimes for two to three weeks.

Analysts say that above- consensus Chinese economic growth of 6.80% in the final quarter of last year will support sentiment, but also note that investment and industrial production data for December suggest slower demandgrowth.

Prices for aluminium, another metal that would be in demand if the United States revamps its infrastructure, were also firmer.

ShFE aluminum climbed as much as 3% to ¥13,775, while LME aluminum was up 1% at $1,865 a ton. —