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Copper prices fall on a firm dollar and profit-taking before U.S. data

The copper price fell on Thursday due to a strong dollar, as investors locked up profits after a rally that reached a five-month high ahead of important U.S. employment data and amid uncertainty over tariffs.

In open-outcry official trading, three-month copper at the London Metal Exchange fell 0.9% to $9.885 per ton, just a day after it reached its highest level since March 26 ($10,038/tonne).

LME copper is up 13% this year.

Ole Hansen is the head of commodity strategy for Saxo Bank, Copenhagen. He said: "It appears to be profit-taking before these economic data prints."

"Also this $10,000 level appears to be quite a strong barrier for the price of copper for now, and the fundamentals are still not strong enough to allow it to break through."

The U.S. non-farm employment report, which will be released on Friday, is crucial for setting expectations.

The Shanghai Futures Exchange's most traded copper contract fell 0.5%, to 79.770 yuan (11,152.12 dollars) per ton.

The dollar index has also been a factor in metals markets, as it makes commodities priced in U.S. dollars more expensive for buyers who use other currencies.

The markets were also shook by uncertainty about the demand for metals in China, the top consumer of these products.

Galaxy Futures said that the marginal weakness in terminal demand could be due to a weak peak season in China. However, the shutdown of many scrap copper rod mills has helped support copper prices.

LME zinc activity dropped 1% to $2,832.50 per ton as investors shrugged at low inventories. The metal is mainly used for galvanizing steel.

LME zinc stocks The number of people who have fallen 76% this year.

Tom Price, Panmure Liberum's head of commodities strategy, stated in a report that the abating steel industry activity in China is the biggest zinc price/demand driver.

Aluminium fell 0.7%, to $2,600 per ton. Lead slipped 0.1%, to $1,993. Nickel dropped 0.6%, to $15,215; and tin slid 0.4%, to $34,525.

Click here to see the top metals stories ($1 = 7.1529 Chinese yuan). (Reporting and additional reporting by Lucas Liew, in Singapore. Editing by Shailesh Kumar)

(source: Reuters)