Copper gains as soft dollar set to save 10 week streak

Copper prices rose on Friday, poised to conclude the week with a higher value, bolstered by the US dollar's decline overnight. The benchmark three-month copper on the London Metal Exchange saw a 0.06% increase, settling at $14,342 per metric ton by 0300 GMT. This position set the metal on track for a 0.03% weekly rise, marking the tenth consecutive weekly gain.

The Shanghai Futures Exchange's most-traded copper contract climbed 0.58% to 109,170 yuan ($16,254.73) per ton. The US dollar weakened overnight due to dwindling expectations of a rate hike, following remarks from Fed Governor Christopher Waller. With the CME's Fedwatch tool indicating equal odds of a September rate hike, copper could benefit from being more affordable for non-US buyers and stimulated industrial activity with lower rates.

Copper experienced a tumultuous week, initially derailed by a resurgence in interest rate fears and concerns about reduced physical supply. The LME copper cash-to-three-month spread narrowed to $57.93 per ton, reflecting backwardation, down from $171.40 a week prior. Aluminium edged closer to a three-week high on the LME due to supply tightness and availability concerns, rising 0.2% and poised to end the week 2.16% higher.

The LME aluminium cash-to-three-month spread flipped into backwardation on Thursday, indicating tight availability. Other metals like zinc, lead, nickel, and tin had minor changes, with zinc up 0.01%, lead up 0.11%, nickel up 0.17%, and tin down 0.27% on the LME. Among SHFE metals, zinc increased 0.54%, lead saw little change, nickel dropped 0.57%, and tin rose 0.67%.