Base Metals Preview: Dollar Strength Weighs On Copper Prices

7 Jun 2022 , 09:09 AM

COMEX copper is seen lower for the second consecutive day on Tuesday, weighed by a stronger dollar tracking surging yields on US inflation worries. Copper futures was lower at $4.39 per pound after having climbed to above $4.57 levels last week. US inflation data due on Friday is keeping yields higher. The dollar index, that measures the greenback against a basket of currencies pushed as high as 102.64, a weeks high, buoyed by the 10-year US Treasury yields that climbed to 3.05% for the first time in nearly four weeks. Meanwhile, Chinas service sector logged another marked contraction in May due to measures taken to contain the recent uptick in COVID-19 cases, survey results from S&P Global showed on Monday. The Caixin services Purchasing Managers Index rose to 41.4 in May from a 26-month low of 36.2 in April. However, Beijing and the commercial hub Shanghai returning to normalcy in recent days after two months of painful lockdowns is expected to support the metal. Traffic bans were lifted and restaurants were opened for dine-in service on Monday in most parts of Beijing. Powered by Commodity Insights