(Bloomberg) -- Industrial metals headed for a monthly gain, led by strong advances in zinc and aluminum, on signs of resilient US growth and a weaker dollar as the Federal Reserve prepares to cut interest rates.
The LMEX Index that tracks the six main metals has climbed almost 3% so far in August, on pace for its best month since April. Upbeat US growth data suggested the Fed is engineering a so-called soft landing for the economy. With the US central bank expected to pivot to cuts in September, a gauge of the US currency is set for its biggest monthly drop this year, aiding commodities.
Zinc, used to galvanize steel, has rallied more than 8% this month as a vow by Chinese smelters to reduce intake of concentrate is likely to cut production. Aluminum has risen by about the same amount in August, with gains supported in part as a hike in fees at a warehouse operator raised costs.
Copper has also eked out a gain this month, despite sustained concerns about a slowing of China’s economy and rising inventories. Global exchange-tracked copper stockpiles have expanded to more than 610,000 tons this month, the highest figure for this time of the year since 2013.
On the London Metal Exchange, zinc traded 0.4% higher at $2,890.50 a ton at 3:33 p.m., while aluminum rose 0.3% to $2,465.50 a ton, and copper added 0.4% to $9,278.50 a ton.
--With assistance from Sana Pashankar.
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