Copper and other metals rise as dollar falls before US vote

Copper, aluminum and other base metals rose as the dollar weakened ahead of the US Presidential election day on Tuesday.

A gauge of the US currency dropped as investors walked back bets on Donald Trump being the favorite in the vote, with the latest polls showing the race remains too close to call. A falling dollar makes commodities cheaper for many buyers.

Most base metals posted losses last month as initial optimism over China’s renewed efforts to spur growth turned to doubts over their effectiveness. The market is now waiting to see if a meeting of the executive body of the nation’s top legislature this week will unlock any additional resources that would support the economy.

Copper rose 0.7% to $9 636 a ton on the London Metal Exchange as of 12:08 p.m. in Shanghai. Aluminum climbed 0.5% to $2 612.50 and nickel advanced 0.8%.

BMI, a Fitch Solutions company, raised its average aluminum price forecast for this year by 2% to $2,450 a ton, citing supply concerns, China’s stimulus efforts and Federal Reserve rate cuts.

Meanwhile, iron ore futures rose 0.8% to $102.95 on the Singapore exchange, following a 1.5% drop on Friday.