LONDON- Copper prices retreated, weighed down by persistent worries about weak demand in top metals consumer China, but a softer dollar after US jobs data cushioned the losses.
Three-month copper on the London Metal Exchange was down 0.4 percent at $8,575 per metric ton after rising 1.2 percent on Thursday.
US Comex copper futures dropped 0.7 percent to $3.87 a lb.
Copper pared losses after US jobs data, which prompted a reversal lower in the dollar index and a decline in Treasury yields.
The mixed report showed the US economy added fewer jobs than expected in July, but solid wage gains and a decline in the unemployment rate back to 3.5 percent pointed to continued tightness in labor market conditions.
A weaker dollar makes commodities priced in the US currency less expensive for buyers using other currencies.
“We think the recession fears for the US economy are blown out of all proportion. We don’t anticipate any sort of recession,” said Naeem Aslam, chief investment officer at Zaye Capital Markets.
“We believe we will see robust and sustainable growth in copper demand so the current weakness in prices is an opportunity to buy.”
“On the Chinese front, the PMIs are in contractionary territory, so that is also causing pressure on metals prices,” Aslam added.
