BEIJING, Jan 5 (Reuters) - Prices of copper rebounded on Friday as the dollar edged lower, but the market's revised expectation of the scale and timing of the U.S. Federal Reserve's interes rate cuts capped gains.
Three-month copper on the London Metal Exchange was up 0.2% to $8,482.50 per metric ton by 0212 GMT, reversing a loss of 0.6% on Thursday.
The contract little changed this week, after gaining 2.2% in 2023.
The dollar index dipped, making it less expensive to buy the greenback-priced metal.
Market expectations that the Fed will start easing policy as early as March had boosted copper prices, often seen as an economic bellwhether.
But minutes from December's policy meeting showed most policymakers agreed borrowing costs need to remain high for some time, suggesting a March cut is less likely.
Also weighing on the market was supply tension amid low stocks in top consumer China, where demand remained firm.
The most-traded February copper contract on the Shanghai Futures Exchange was unmoved at 68,410 yuan ($9,545.40) per ton.
LME aluminium climbed 0.4% to $2,289.50 a ton, zinc added 0.4% to $2,549, nickel ticked 0.3% higher to $16,115, tin nudged 0.1% up to $24,865 and lead increased 0.5% to $2,051.50.
SHFE aluminium shed 0.3% to 19,220 yuan a ton, nickel declined 1.8% to 123,940 yuan, tin declined 1.8% at 207,950 yuan and zinc lost 1% to 21,210 yuan, while lead gained 0.6% to 16,075 yuan.
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($1 = 7.1668 Chinese yuan renminbi) (Reporting by Siyi Liu and Mei Mei Chu; Editing by Rashmi Aich)
