Copper price up as dollar dips

COPPER advanced on Friday as the dollar dipped, but the metal was headed for a weekly loss on weak Chinese economic data and a stronger greenback earlier in the week.

Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.1 percent to US$8,319.50 per metric tonne, while the most-traded March copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 edged up 0.1 percent at 67, 800 yuan (US$9, 422.29) a tonne.

This is according to a daily market report issued by Absa Bank Zambia which also showed that Brent crude prices drifted lower on Friday after rallying the day before, as geopolitical tensions and disruptions in United States oil production from a cold blast were countered by concerns over slow demand growth in China and ample supply forecasts.

“Brent crude futures LCOc1 fell 23 cents, or 0.3 percent, to US$78.87 a barrel, and United States West Texas Intermediate crude futures (WTI) CLc1 slid seven cents to US$74.01,” the bank stated.

The report also showed that gold prices slipped on

Friday and were on track for their worst week in six, as the dollar and bond yields firmed after United States central bankers pushed back against expectations of early interest rate cuts.

“Spot gold edged down 0.1 percent to US$2, 020.79 per ounce, and has fallen 1.4 percent so far in the week. Meanwhile, U.S. gold futures GCcv1 edged up 0.1 percent to US$2,022.60,” the report stated.

Meanwhile, Absa’s report on the Kwacha showed that it lost further against the United States dollar during Thursday’s trading session due to mounting demand for the greenback from large corporate entities and other market players.

“Zambian commercial banks quoted the Kwacha at K26.300/26.350 per dollar, by midday the local unit depreciated

FILE PHOTO: Copper production

further to K26.350/26.400 on the bid and offer respectively were it traded till market closure.

“In the short term, the expectation is that the currency will continue the same trend with the factors of demand and supply being the main determinants of the direction the currency pair will take,” according to the report.

Elsewhere, South Africa’s rand strengthened on Thursday after monthly mining figures showed an increase in production.

The rand traded at 18.9475 against the dollar, 0.6 percent stronger than its previous close. “The country’s total mining output ZAMNG=ECI rose 6.8 percent year on year in November after a revised increase of 3.6 percent the previous month, Statistics South Africa data showed,” the report stated.