May 3 (Reuters) –Base metals prices gained on a softer dollar on Friday, but most were on track for a weekly decline on risk-off sentiment as the Chinese markets are closed for a public holiday.
Three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.5% to $9,810 per metric ton by 0402 GMT, aluminium CMAl3 edged up 0.2% at $2,534 and nickel CMNI3 advanced 0.9% to $18,815.
LME zinc CMZN3 advanced 0.5% to $2,899 a ton, lead CMPB3 was up 0.4% at $2,189 and tin CMSN3 increased 0.4% to $31,080.
“Copper remained below the $10,000 a ton level, testing the robust trend support at $9,790. A drop below this threshold could lead to further price corrections,” Sucden Financial analysts said in a note.
“Additionally, as Chinese markets reopen on Monday (May 6) after the holiday, we believe that any sustained risk-off mood could exacerbate declines due to increased market activity,” the analysts said.
Chinese markets are closed for the Labour Day holiday from May 1-3.
On a weekly basis, all base metals except zinc were heading for a decline.
LME copper was set to snap four straight weeks of gains, down l.6% so far this week. Aluminium was down 1.4% week-on-week, nickel has lost 1.5% so far, lead eased 0.8% and tin dropped 4.1%.
Zinc bucked the trend to rise 1.9% so far this week. Tightness in mining supply has lent prices some support, but a restart of Nyrstar’s Budel, scheduled for later this month, has eased the supply tightness.
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DATA/EVENTS (GMT)
0830 UK S&P Global PMI: Composite – Output April
0830 UK Reserve Assets Total April
0900 EU Unemployment Rate March
1230 US Non-Farm Payrolls April
1230 US Employment Rate April
1345 US S&P Global Comp, Svcs Final PMI April
1400 US ISM N-Mfg PMI April
Reporting by Mai Nguyen in Hanoi; Editing by Sonia Cheema
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