Copper hits two-month high

LONDON: Copper prices hit their highest in two months and aluminium the highest in three on Thursday after the long-awaited interest rate cut by the US Federal Reserve weakened the dollar and gave support to growth-dependent metals.

Three-month copper on the London Metal Exchange rose 1.4 per cent to $9,533 per metric ton in official open-outcry trading after hitting $9,586.5, its highest since July 18, and stumbling upon resistance from the 100-day moving average.

The US currency fell, making dollar-priced metals more attractive for buyers using other currencies, as the Fed kicked off its monetary easing cycle on Wednesday with a larger-than-usual half percentage point reduction.

LME aluminium was steady at $2,536 a ton in official activity after hitting $2,569, its highest since June 13. Zinc increased 1.5% to $2,929, nickel rose 0.7 per cent to $16,350, lead climbed 1.6 per cent to $2,070 and tin moved 1.3 per cent higher to $32,000.