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Copper gains on soft dollar; spotlight on US election, China conference

Copper extended gains on Tuesday, helped by a suppressed dollar, while caution prevailed as investors sought to the closelyfought U.S. governmental election and stimulus cues from leading customer China.

Three-month copper on the London Metal Exchange (LME). was up 0.3% to $9,727 per metric ton by 0540 GMT, after. hitting a two-week peak earlier in the session.

While the most-traded December copper agreement on the. Shanghai Futures Exchange (SHFE) increased 0.9% to. 77,680 yuan ($ 10,936.53) a heap.

The U.S. dollar was on the back foot as traders squared. positions on the day of the U.S. election, making metals more. interesting other currency holders.

Also, helping prices was a survey that showed China's. services activity broadened at the fastest speed in 3 months. in October. This was followed by the unanticipated production. activity growth.

Copper's short-term trend will depend upon who wins the. election and what information the Chinese authorities disclose ... A. Trump presidency might push rates as it will intensify. trade tensions with China, Marex consultant Edward Meir stated.

Today's meeting of China's National People's Congress. standing committee remains in the spotlight as investors try to find. further information on stimulus procedures.

Somewhere else, the U.S. election is proving to be a tight race. in between Democrat Kamala Harris and Republican Donald Trump, and. the winner might perhaps not be understood for days.

The Federal Reserve is expected to cut rates by 25 basis. points at its Nov. 6-7 meeting.

We believe copper can rally temporarily to $10,000 over the. coming week, on the back of China alleviating, Fed easing, and a. more comprehensive equity danger on (need to Trump win), or a reduction in. tariff fears (need to Harris win), analysts at Citi wrote in a. note.

LME aluminium added 0.6% to $2,636 a ton, nickel. climbed up 0.7% to $16,125, zinc got 0.8% at. $ 3,059, lead increased 0.4% to $2,042 and tin. rose 0.2% to $32,200.

SHFE aluminium included 1.5% at 21,070 yuan a ton and. tin rose 0.2% to 262,130 yuan, while nickel. fell 0.4% to 124,280 yuan, zinc slipped 0.2% to 25,075. yuan and lead dipped 0.2% to 16,760 yuan.

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(source: Reuters)