METALS-Copper extends gains on Chile supply worries, softer dollar

By Brijesh Patel

Aug 5 (Reuters) - Copper prices rose on Tuesday, supported by a weaker U.S. dollar and supply concerns after the collapse of a mine in top producer Chile.

Three-month copper on the London Metal Exchange CMCU3 advanced for a third straight session, up 0.4% at $9,723.50 per metric ton, as of 0701 GMT.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 gained 0.5% to 78,580 yuan ($10,935.91) a ton.

Chilean miner Codelco said on Monday that underground operations at its El Teniente copper mine remained suspended, after an earthquake triggered a collapse that killed six people last week.

Codelco is the world's biggest copper miner, while Chile supplies about a quarter of the world's red metal.

"The Codelco El Teniente copper mine stoppage, a weaker dollar after last week's U.S. jobs data and risk-on sentiment are helping copper prices," a Singapore-based metals trader said.

"The debasement of the dollar is likely to continue, so holding hard assets in metals as a store of purchasing power could be gaining traction."

The dollar index .DXY fell for a third straight session after a soft U.S. jobs report last week.

A weaker dollar makes greenback-denominated assets more affordable to holders of other currencies. USD/

Risk appetite has risen globally after the jobs report raised bets that the Federal Reserve may cut rates soon to support the economy. MKTS/GLOB

Copper, used in power and construction, is seen as a gauge for the health of the global economy.

Among other metals in London, aluminium CMAL3 climbed 0.8% to $2,573.50 a ton, nickel CMNI3 rose 0.4% to $15,120, lead CMPB3 was up 0.5% at $1,968, tin CMSN3 gained 0.3% to $33,210, and zinc CMZN3 rose 0.8% to $2,772.

SHFE aluminium SAFcv1 was up 0.5% at 20,560 yuan, nickel SNIcv1 climbed 0.8% to 120,910 yuan, lead SPBcv1 was flat at 16,775 yuan, tin SSNcv1 rose 0.5% to 267,490 yuan, and zinc SZNcv1 gained 0.8% to 22,380 yuan.

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