METALS-Copper, other base metals rise on Fed rate cut bets, China trade deal hopes

By Brijesh Patel

Aug 7 (Reuters) - Copper and other base metals rose on Thursday, supported by growing expectations of a Federal Reserve rate cut and optimism over a potential trade truce between the U.S. and China.

Three-month copper on the London Metal Exchange CMCU3 added 0.2% to $9,695 per metric ton as of 0148 GMT.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 gained 0.4% to 78,450 yuan ($10,923.29) a ton.

"There is some optimism about a possible trade deal with China. The deadline for that is August 12th, and the reports we are seeing are that the discussions are proceeding pretty well," said Marex analyst Edward Meir.

"In other geopolitical developments (is) the possible summit meeting between Trump, Putin and Zelensky, which also should help weaken the dollar and give commodities a bit (of a) lift."

On Tuesday, U.S. President Donald Trump said the U.S. was close to a deal with China and that he would meet Chinese President Xi Jinping before the end of the year if an agreement is struck.

The dollar index .DXY languished near a more than one-week low after a surprisingly weak U.S. jobs data last week triggered bets for Fed rate cuts from September.

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

Investors are closely watching the developments in Chile, the world's largest copper producer, after its El Teniente copper mine collapsed after an earthquake last week, killing six people.

Copper miner Codelco [RIC:RIC:COBRE.UL] has sought permission from Chile's mining regulator to reopen a part of its flagship mine, two sources with knowledge of the matter said.

Among other metals in London, aluminium CMAL3 climbed 0.9% to $2,631.50 a ton, nickel CMNI3 rose 0.1% to $15,145, lead CMPB3 gained 0.4% to $2,001.50, tin CMSN3 added 0.1% to $33,380, and zinc CMZN3 advanced 0.7% to $2,808.

SHFE aluminium SAFcv1 rose 1% to 20,800 yuan, nickel SNIcv1 gained 0.4% to 121,090 yuan, lead SPBcv1 climbed 0.3% to 16,880 yuan, tin SSNcv1 added 0.1% at 267,320 yuan, and zinc SZNcv1 advanced 1.3% to 22,610 yuan.

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