(Updates prices, adds quotes)<\/p>\n
July 23 (Reuters) – Copper advanced on Friday as improved risk sentiment and a stable dollar lifted prices of metals, while an extended policy easing in the European Union lent support.<\/p>\n
Three-month copper on the London Metal Exchange rose 0.8% to $9,516 a tonne by 0512 GMT while the most-traded August copper contract on the Shanghai Futures Exchange advanced 1.7% to 69,810 yuan a tonne.<\/p>\n
Both the contracts for copper, which is often used as a gauge of global economic health, are set to gain this week.<\/p>\n
\u201cWe saw a slight bounce in equity markets yesterday as upbeat earnings help overcome worries about growth and together with a stable dollar it means metals can trade a bit more on their own fundamentals,\u201d said commodities broker Anna Stablum of Marex Spectron.<\/p>\n
\u201cIt is macroeconomic headwinds that are giving them a tough time to rally. Microeconomic for most of these metals look solid… thus lead, nickel and tin are performing well,\u201d she added.<\/p>\n
The European Central Bank\u2019s pledge to keep interest rates at record lows for longer to boost recovery and a sluggish inflation also lent support.<\/p>\n
\u201c(This) might add to bullish sentiment. Loose monetary policy is a big reason why we are up here in the first place,\u201d Stablum said.<\/p>\n