Jan 29 (Reuters) - Copper advanced to set a record on Thursday, as part of a broad metals rally, supported by investors' appetite for physical assets amid geopolitical risks and a stronger dollar.
The most-active copper contract on the Shanghai Futures exchange surged 6.35% to 108,740 yuan ($15,652.12) a metric ton as of 0330 GMT, after setting an all-time high of 109,570 yuan a ton earlier this session.
The benchmark three-month copper on the London Metal exchange also showed strength, climbing 6.63%
to $13,953.50 a ton as of 0350 GMT, up 6.73% to set a record of $13,967 a ton.
The Shanghai contract rose near 9% so far this year, while the London benchmark moved up more than 11%, following the record-setting rally in 2025, fuelled by supply concerns stemming from mine disruptions and regional dislocation amid U.S. tariff threats.
Copper is rising as investors move over from the strong gains in gold and silver, traders said.
Copper's gain on Thursday came after gold and silver set records due to investors' rush to physical assets amid geopolitical risks, as U.S. President Donald Trump on Wednesday threatened Iran of possible attacks if it did not strike a deal on nuclear weapons.
The U.S. dollar steadied following the Federal Reserve's decision to keep interest rate unchanged on Wednesday, but still hovered around recent lows.
A weak dollar helped support greenback-denominated commodities by making them more affordable for investors using other currencies, thereby boosting demand.
The gains in the red metal came despite weak spot demand in the biggest consumer market China. The Yangshan copper premium, a gauge of Chinese demand for imported copper, declined to $20 a ton on Wednesday, the lowest since July, 2024.
Elsewhere, aluminium remained strong. The most-active contract rose 3.08% to 25,630 yuan a ton, and the London benchmark climbed 1.87%.
Among other SHFE base metals, zinc climbed 2.78% lead added 0.88%, nickel rose 1.12% and tin was up 0.65%.
Elsewhere on LME, zinc surged 2.62%, lead climbed 1.29%, nickel rose 2% and tin added 1.54%.
Thursday, January 29
DATA/EVENTS (GMT)
1000 EU Consumer Confid. final Jan
1100 France Unemp Class-A SA Dec
1330 US International Trade $ Nov
1330 US Initial Jobless Clm 24 Jan, w/e
1500 US Factory Orders MM Nov
($1 = 6.9473 Chinese yuan renminbi)
(Reporting by Lewis Jackson and Dylan Duan; Editing by Rashmi Aich)
