Copper And Other Metals Gain On Weak Dollar, China Stimulus Hope

(Bloomberg) --Copper, aluminum and other base metals climbed as the dollar weakened ahead of the US presidential election, and on the prospect of more stimulus measures from Chinese authorities.

A gauge of the US currency fell as investors walked back bets on Donald Trump winning the election, with the latest polls indicating Kamala Harris was gaining ground. A weaker dollar makes commodities cheaper for buyers using other currencies.

Metals and iron ore also advanced — along with Chinese stocks and the yuan — as investors wait to see if a meeting of the executive body of the nation’s top legislature this week will unlock any additional resources to support the economy.

In a highly anticipated move, the National People’s Congress Standing Committee held a meeting on Monday morning, where it discussed a plan to increase local governments’ debt ceiling to swap out their hidden debt, according to the official Xinhua News Agency.

Most base metals posted losses last month as initial optimism over the country’s efforts to spur growth turned to doubts over their effectiveness.

Copper rose 0.7% to $9,634.50 a ton on the London Metal Exchange as of 11:15 a.m. local time. Aluminum was little changed at $2,598 and tin advanced 1.2%.

BMI, a Fitch Solutions company, raised its average aluminum price forecast for this year by 2% to $2,450 a ton, citing supply concerns, China’s stimulus efforts and Federal Reserve rate cuts.

Meanwhile, iron ore futures rose 2.1% to $104.25 in Singapore, following a 1.5% drop on Friday.