LONDON- Copper prices snapped a five-session winning streak on Tuesday under pressure from a rebounding dollar as investor focus shifted to a U.S. Federal Reserve meeting expected to give more direction on monetary policy.
Benchmark copper on the London Metal Exchange lost 0.8% to $9,727.50 per tonne in official trading, after touching its highest since June 15 at $9,924.
"Given the scale of moves we have seen since the (close of business) 19th July ... some sort of pause was to be expected especially given the Fed's two-day meet," said Alastair Munro at broker Marex.
The dollar eased early on Tuesday just below recent peaks, but the safe-haven currency rebounded later in the session as investors turned their focus to this week's Federal Reserve meeting.
Sentiment was cautious as investors awaited comments from the Fed due on Wednesday for clues on interest rate policy that would impact the dollar and liquidity in the financial markets.
FORECAST: Goldman Sachs says copper prices are poised to grow as demand outpaces supply since the concentrate market is very tight, particularly in China.
The bank's three-month, six-month and 12-month price target for copper is $10,500/t, $11,000/t and $11,500/t, respectively.
ALUMINIUM: Miner Rio Tinto said it planned to cut production at its BC Works aluminium smelter in Kitimat, Canada to 35% following a strike.
FLOODS: Heavy rains in China have boosted hopes for higher copper and aluminium demand while Commerzbank says aluminium production halting in the affected regions could also support prices.
PERU: A four-day-long blockade in Peru by protesters seeking greater benefits from natural resources is disrupting operations of MMG Ltd's Las Bambas copper mine, one of the country's largest.
(Reporting by Zandi Shabalala; Editing by Joe Bavier and David Evans) ((firstname.lastname@example.org;))