(Updates with official prices)
By Pratima Desai
LONDON, April 11 (Reuters) - Copper prices rose on
Tuesday due to a softer dollar, although data from top consumer
China signalling weak activity capped gains ahead of U.S.
inflation data that could yield clues to U.S. interest rates.
Benchmark copper on the London Metal Exchange traded
up 0.4% at $8,840 a tonne in official rings. Prices of the
metal, used as a gauge of economic health, have mostly traded
between $8,500 and $9,000 a tonne since February.
Analysts said China's consumer price inflation hitting an
18-month low and factory-gate price falling at the fastest pace
since June 2020 suggested sluggish activity and demand.
U.S. consumer price inflation data is due on Wednesday,
while the Federal Reserve's decision on U.S. interest rates will
be made at its meeting on May 3.
"All eyes are on U.S. CPI data for the next potential
copper move with a miss in the headline and core inflation
prints likely to support commodities," said Giles Coghlan, chief
market analyst for broker HYCM.
China's trade and house price data due later this week will
also be closely watched by industrial metals markets.
Support for copper prices comes from low
stocks and large holdings of warrants , which have
fuelled worries about supplies on the LME market and created a
premium for the cash over the three-month contract .
On the technical front, copper is hemmed in by the 50-day
moving average currently around $8,910 and the 100-day moving
average at around $8,740.
Meanwhile, aluminium fell to $2,306 a tonne, the
lowest since March 23, as concerns about demand from companies
in the transport, packaging and construction industries
outweighed worries about supplies in Europe and China.
Aluminium was last down 1.1% at $2,307 a tonne.
Zinc slipped 0.6% to $2,762, lead gained
0.1% to $2,097, tin lost 1.4% to $23,975 and nickel advanced 1.7% to $23,190.
(Reporting by Pratima Desai; Editing by Sherry Jacob-Phillips,
Kirsten Donovan)
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