Copper prices crept to their highest in more than a month on Monday, supported by upbeat manufacturing data from top metals consumer, China, and a weaker dollar.
Three-month copper on the London Metal Exchange was down 0.2% at $9,886 a metric ton after touching its highest since July 24 at $9,947.
LME copper has gained 12% this year, having rebounded from $8,105 in early April, the weakest in more than 16 months.
Investors took heart from a private sector survey on Monday that showed China’s factory activity in August expanded at the quickest pace in five months on the back of rising new orders.
“Macro and cyclical conditions in China are generally on the up. That should be good for final demand,” said WisdomTree commodity strategist Nitesh Shah.
The positivity is not restricted to commodities, Shah added. “If you look at Chinese equities, they’ve been roaring,” he said.
The most-traded copper contract on the Shanghai Futures Exchange gained 0.7% to 79,780 yuan ($11,153.52) a ton, rising for a second straight session.
Gains on metals markets were restrained by worries about US tariffs, which helped to dampen factory activity in other parts of Asia.
The dollar index hit a five-week low on Monday as investors await U.S. labor market data this week, which could alter expectations for interest rates.
A softer dollar makes commodities priced in the US currency cheaper for buyers using other currencies.
Among other metals, LME aluminum was little changed at $2,616 a ton, tin dipped 0.1% to $34,995, lead gained 0.7% to $2,004.50, zinc rose 0.4% to $2,831, and nickel added 0.1% to $15,435 after touching its strongest since July 25 at $15,520.
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