Copper declines as dollar resumes gains on rate hike prosects

Copper prices declined on Monday, giving up earlier gains at the London Exchange which were achieved following a decline in the exchange's inventories, while markets grow optimistic about Chinese reforms.

At the London metals exchange, copper three-month futures rose 0.1% to $9,030 a tone, while copper futures at  the Shanghai Exchange fell 0.1% to 69,960 yuan a tone, or $1,0174. 

Copper inventories at the London Metals Exchange fell to 51,550 tones, the lowest level since August 2005, with a similar decline at the Shanghai inventories. 

Additionally, weak Chinese inflation data bolstered the case for more official stimulus to boost growth. 

Sentiment was driven by higher risk appetite and a weaker dollar, which boosted the metals market. 

Tin also rallied 11.3% to 217,240 yuan per tone, while rising 8.3% at the London Exchange to $26,925 a tone on a potential mining ban in Myanmar. 

Nickel rose 2.5% to $24,740 a tone, while Aluminium rose 0.1% to $2,387, as Zinc rose 0.2% to $2,862.  

Otherwise, the dollar index rose 0.7% as of 14:40 GMT to 102.2, with a session-high at 102.2, and a low at 101.5. 

Dollar received support on speculation the Federal Reserve will carry on its policy tightening as banking concerns subsided. 

Now investors focus on corporate results for the first quarter of the year, starting with Wall Street banks.