METALS-Copper set for weekly gain on dollar weakness; zinc rallies

Fri May 19, 2017 10:44am GMT
 

* LME/ShFE arb: tmsnrt.rs/2oQ5nm2

* China zinc premiums highest in nearly three years

* Lead down 7 pct since start of May (Recasts, updates prices, adds comment/detail; changes dateline)

By Maytaal Angel

LONDON, May 19 (Reuters) - Copper rose on Friday and looked set to close the week higher thanks to the dollar's weakening and receding worries over China's economy, while zinc surged about 1.5 percent amid stock draws.

Stockmarkets in top metals consumer China ended the week higher, snapping a five-week losing streak as soothing regulatory comments and the central bank's cash injection offset worries over tighter banking regulations and economic growth.

The dollar was on track to record its worst week since August, having given up almost all the gains made since Donald Trump, now surrounded by political worries, was elected U.S. president last year.

"Doubts on the China (growth) front have been fading for the past week but increasing on the U.S. front and that's constraining the upside," said Nitesh Shah, commodity strategist at ETF Securities.

"I see metals treading water for the next few weeks, but thereafter they are likely to increase (assuming) this negative sentiment from the U.S. fades. In a year of political change in China things aren't going to be allowed to fall off a cliff."   Continued...

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