Copper prices rose on Friday, as investors considered the potential for U.S. interest rate cuts next year following slower United States consumer inflation, while the impact of a possible artificial intelligence bubble moderated gains.
The most-active copper contract on Shanghai Futures Exchange closed daytime trading up 0.46% at 93,180 yuan a metric ton, but ended the week 1.07% lower.
Last week, it set a record high of 94,030 yuan.
The benchmark three-month copper on the London Metal Exchange gained 0.29% to $11,812 a ton as of 0714 GMT, set to close the week 2.53% higher.
In the U.S., consumer prices rose slower than the market expected in the year ended November, according to data released on Thursday, which provided some boost for hopes of rate cuts next year.
The Federal Reserve delivered a 25-basis-point rate cut last week, but signalled that it may not do so again in the near term. Financial markets and the bank have been hobbled by statistics ambiguity due to the earlier 43-day government shutdown.
Meanwhile, scepticism surrounds AI trades after a tech stock slump last week and Oracle’s data centre partner Blue Owl Capital reportedly backing out of a $10 billion deal for its next facility. Copper is used widely in data centres.
Among SHFE base metals, nickel rose 3.17%.
The London benchmark nickel climbed 1.36%.
The metal, used in stainless steel and batteries, rebounded from a slump earlier this week after top producer Indonesia’s mining association said the government would reduce annual nickel ore output to around 250 million tons.
In Shanghai, aluminium rose 0.89%, zinc advanced 0.17%, lead gained 0.42%, and tin added 2.40%.
Among other LME metals, aluminium added 0.36%, zinc rose 0.38%, lead gained 0.69% and tin advanced 1.40%.
