Copper advanced on Wednesday and hovered near a peak set this week, as supply concerns underpinned overall bullishness around the metal, while the market turned its attention to the U.S. Federal Reserve’s interest rate decision next week.

The most-traded copper contract on the Shanghai Futures Exchange HG1! reversed the session’s initial losses to close daytime trading 0.13% higher at 89,210 yuan ($12,630.79) per metric ton, extending gains to the eighth straight session.

Shanghai copper followed the benchmark three-month copper HG1! in London, which eased from an all-time high on lower risk appetite and profit-taking.

But London copper also reversed Tuesday’s losses to rise 0.93% to $11,249 a ton as of 0705 GMT.

Optimism over another U.S. central bank rate cut on December 10 supported the upward momentum.

The cut is expected despite limited availability of economic data due to the 43-day U.S. government shutdown, with a 25 bps move already been priced in.

Policymakers could risk “creating unnecessary market disruption” by pushing back against the expectation, analysts at Sucden Financial said in a note.

All base metals gained across the Shanghai and London exchanges.

Elsewhere among SHFE base metals, aluminium rose 0.39%, zinc added 0.22%, lead edged 0.17% higher, nickel was up 0.11%, and tin surged 2.15%.

Among other LME metals, aluminium  rose 0.79%, zinc gained 0.44%, lead added 0.58%, nickel climbed 0.78% and tin advanced 1.56%.
Source: Reuters