Copper records biggest weekly gain in over a year

LONDON — Copper edged up on Friday, posting its biggest weekly gain in more than a year as the dollar hovered near three-year lows, while zinc climbed on depleting stocks.

Benchmark copper on the London Metal Exchange (LME) ended 0.70% higher at $7,233 a ton. The metal, used in power and construction, finished nearly 7% higher on the week in its best performance since November 2016.

“The return of risk appetite that we are seeing through a strong rebound in stock markets, inflation expectations and the weaker dollar has been supportive for industrials,” Saxo Bank analyst Ole Hansen said.

The dollar edged higher but was still near three-year lows against a basket of currencies, headed for its biggest weekly loss in two years, as bearish factors offset support the US currency could take from rising Treasury yields.

The US currency has been weighed down by a variety of factors, including concerns that Washington might pursue a weakdollar strategy and the perceived erosion of its yield advantage as other countries start to scale back easier monetary policy.

A weaker greenback benefits dollar- priced commodities by making them more affordable for buyers paying with other currencies.

US data showed an unexpected dip in industrial production last month, but analysts said the focus was on next week’s round of data.

“Industrial production data out of the US was slightly disappointing but it didn’t spill over into the copper markets,” Danske Bank analyst Jens Pedersen said.

“The market will look into next week, where we get the next round of manufacturing PMIs, which will be an important gauge for the market to assess how global industrial activity is doing.”

Zinc stocks saw an outflow of 2,700 tons to 151,650 tons, bringing inventories to their lowest since 2008.

LME zinc ended 0.10% higher to $3,575 a ton, and clocked its best week since August 2017.

Aluminum rose by 2% to $ 2,208, lead shed 0.20% to $2,613, tin ended 0.8% higher at $21,750 and nickel slipped 1.6% to $13,920. —