Copper rises and dollar weakens as U.S. inflation data awaits

By Eric Onstad

LONDON, Feb 14 (Reuters) – Copper prices extended their gains on Tuesday as the dollar weakened and investors hoped a report would show a moderation in U.S. inflation later in the day.

Three-month copper on the London Metal Exchange (LME) rose 0.4% to $8,975 a tonne at 11:15 GMT, after gaining 0.9% the day before.

* “The dollar is weaker on optimism as the pace of inflation weakens,” said Geordie Wilkes, head of research at Sucden Financial.

* A weaker dollar index makes commodities denominated in US dollars cheaper for buyers using other currencies.

* The most-traded copper contract in March on the Shanghai Futures Exchange rose 0.8% to 68,680 yuan ($10,070.23) a tonne.

* Global equities were also higher ahead of US Consumer Price Index data, due out at 1.30pm GMT and expected to show a 6.2% rise in the 12 months to January, versus an increase of 6.5% in December.

* Copper hit a seven-month high of $9,550.50 a tonne last month, largely on bets that the lifting of China’s strict COVID-19 controls would boost consumption of the metal.

* In other base metals, aluminum on the LME rose 0.4% to $2,421.50 a tonne; Nickel rose 0.5% to $26,770; zinc rose 0.5% to $3,112; Lead rose 0.2% to $2,101; and tin fell 0.1% to $27,510.

(1 dollar = 6.8201 yuan)

(Edited in Spanish by Carlos Serrano)