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Copper trades in range as investors assess Fed rate-cut outlook



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BEIJING, Sept 2 (Reuters) -Copper prices were stuck in a narrow range on Monday, as investors assessed the U.S. interest rate cut outlook and demand from top consumer China.

Three-month copper on the London Metal Exchange CMCU3 nudged up 0.1% to $9,245.50 per metric ton by 0131 GMT, after posting a slight gain in August, with rising prospect of a September rate cut.

The most-traded October copper contract on the Shanghai Futures Exchange SCFcv1 dipped 0.2% to 73,860 yuan ($10,417.49) a ton.

The dollar was hanging on to gains made on Friday after upbeat spending figures led markets to trim the chance of a half-point easing from the Federal Reserve.

A strong dollar makes it more expensive to buy the greenback-priced commodity and hence weighs down metals prices.

Crucial for the Fed will be the payrolls report later this week.

Also weighing on the market was demand from China. Copper stocks have declined in recent weeks after lowered prices encouraged buying, also with a traditional good autumn season.

LME aluminium CMAL3 edged 0.1% lower to $2,445 a ton, nickel CMNI3 slid 0.7% to $16,650, zinc CMZN3 moved 0.7% lower to $2,877, lead CMPB3 increased 0.5% to $2,063 and tin CMSN3 lost 0.9% at $32,055.

SHFE aluminium SAFcv1 slipped 0.5% to 19,650 yuan a ton, lead SPBc1 gained 0.2% to 17,330 yuan, while nickel SNIcv1 fell 2.7% to 127,960 yuan, zinc SZNcv1 trimmed 0.9% lower to 23,815 yuan and tin SSNcv1 lost to 260,290 yuan.


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($1 = 7.0900 Chinese yuan renminbi)



Reporting by Siyi Liu and Mei Mei Chu; Editing by Rashmi Aich

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