Copper retreats from five-week high after US data

LONDON — Copper prices retreated on Friday from a fiveweek peak as speculators locked in profits ahead of the weekend after data showed US job growth accelerated in February.

Three-month copper on the London Metal Exchange (LME) was down 0.5% at $8,595.50 per metric ton by 1730 GMT after touching $8,689, the strongest since Jan. 31.

US jobs data were mixed, showing nonfarm payrolls gained more than expected in February, but the unemployment rate hit a two-year high.

That gave US Federal Reserve policy makers weighing when to start interest rate cuts another reason to sit tight for now.

Al Munro at broker Marex said sell signals were triggered by computer-driven trading models, leading to profit taking by speculative funds that had taken bullish positions.

At Friday’s peak, LME copper had gained 7% since hitting a low of $8,127 a month ago.

Friday’s intraday high marks the top of a recent range which copper hit in late December and the end of January, each time failing to break above and then retreating.

“In the copper market, speculative interest has been ebbing and flowing not far from neutral for quite a while simply because the market has been rangebound,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

In contrast to copper, global stocks hit record highs on bets that the Federal Reserve will begin cutting interest rates by midyear. Losses in metals were moderated by a weaker dollar index, which headed for its sharpest weekly drop of the year, making greenback-priced metals cheaper for buyers using other currencies.

LME tin rose 0.1% to $27,625 a ton after touching the strongest since last August and was up 4.3% on a weekly basis, after Indonesia’s refined tin exports dropped 98% on a yearly basis in February.

LME nickel slipped 0.2% to $17,945 after touching a fourmonth high of $18,165, following nickel mining quota delays in Indonesia.

LME aluminum eased 0.5% to $2,241; zinc shed 0.3% to $2,526.50 after hitting a fiveweek high of $2,560.50; and lead dipped 0.2% to $2,104 after marking a one-month peak of $2,139.50.