METALS-Copper, other base metals gain on US 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 U.S. rate cut and optimism over a potential U.S.-China trade deal.

Three-month copper on the London Metal Exchange CMCU3 was up 0.2% at $9,697 per metric ton as of 0702 GMT.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 gained 0.4% to 78,460 yuan ($10,930.16) a ton.

China's trade war truce with the U.S. ends next week, although President Donald Trump hinted further tariffs may come Beijing's way due to its continuing purchases of Russian hydrocarbons.

Still, some analysts remain hopeful about the negotiations.

There is some optimism about a possible trade deal with China. The deadline for that is August 12, and discussions seem to be proceeding pretty well, said Marex analyst Edward Meir.

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

Weak U.S. jobs data last week triggered bets for Federal Reserve rate cuts from September. Lower U.S. interest rates put pressure on the dollar and stimulate economic activity, which increases demand for industrial metals. USD/

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

Copper miner Codelco 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 0.7% to $2,627 a ton, nickel CMNI3 rose 0.5% to $15,210, lead CMPB3 gained 0.7% to $2,008, tin CMSN3 added 0.6% to $33,550, and zinc CMZN3 advanced 0.8% to $2,810.

SHFE aluminium SAFcv1 rose 0.7% to 20,750 yuan, nickel SNIcv1 gained 1% to 121,850 yuan, lead SPBcv1 climbed 0.3% to 16,880 yuan, tin SSNcv1 added 0.4% at 267,940 yuan, and zinc SZNcv1 advanced 1.1% to 22,580 yuan.

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