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Copper reaches a one-month high on the back of strong China factory data, and a weak dollar

The copper price rose to its highest level in over a month Monday. This was boosted by positive manufacturing data from China, the world's largest metal consumer. Also helping were a weaker US dollar and upbeat manufacturing statistics.

The price of three-month copper at the London Metal Exchange was unchanged at $9.896 per metric ton during official open-outcry trades after reaching its highest level since July 24, at $9.947.

LME copper is up 13% in the last year after recovering from its lowest level of $8,105 at the beginning of April.

Investors were encouraged by a survey conducted by the private sector on Monday, which showed that China's manufacturing activity in August grew at the fastest pace in five month on the backs of increasing new orders.

"Macro- and cyclical conditions are generally improving in China." This should be good news for the final demand," said WisdomTree commodities strategist Nitesh Sha.

Shah said that the positive outlook is not limited to commodities. He said that Chinese stocks have been roaring.

Shanghai shares flirted on Monday with 10-year highs.

The Shanghai Futures Exchange's most traded copper contract rose 0.7%, to 79.780 yuan (11,153.52) per ton. This is the second session in a row that the copper contract has risen.

Metals market gains were tempered by concerns about U.S. Tariffs. This also dampened factory activity in Asia.

Investors are awaiting U.S. Labour Market data, which may alter expectations about interest rates.

The dollar is weaker, making commodities priced in U.S. dollars cheaper for buyers of other currencies.

Other metals include LME aluminium, which fell 0.3% during official activity, to $2.609 per ton, and tin, which dropped 0.5%, to $34,850. Lead was up by 0.2%, at $1.994, while zinc rose 0.3%, to $2.828. Nickel, however, rose 0.3%, to $15.465, the highest since July 25.

Click here to see the top metals stories ($1 = 7.1529 Chinese Yuan) (Reporting and editing by David Goodman).

(source: Reuters)