By Reuters

LONDON- Copper prices edged higher on Friday, supported by growing expectations of US interest rate cuts and slightly firmer physical demand in China, though investors remained cautious amid lacklustre economic data.

Three-month copper on the London Metal Exchange was up 0.3 percent at $9,082 a metric ton, steadying after Thursday’s 1.9 percent decline.

US Comex copper futures gained 0.5 percent to $4.10 a lb.

“On the macro front it’s a mixed picture. The easing stance from the Fed is positive, but US and Chinese data have been quite weak,” said Amelia Xiao Fu, head of commodity market strategy at Bank of China International.

US jobs data missed expectations on Friday, spurring traders to bet that the Federal Reserve will start easing policy in September with a big half-percentage-point interest rate cut.

The weak data knocked the dollar lower supporting copper by making commodities priced in the US currency less expensive for buyers using other currencies.

While recent factory data from top metals consumer China has been weak, there has been evidence of some renewed physical buying in China. The Yangshan copper premium rose to a more than three-month peak this week, signaling import appetite.