METALS-Metals range-bound as soft dollar, rate outlook counter tariff uncertainty

SHANGHAI, Jan 17 (Reuters) - Most base metals traded within a tight range on Friday, as support from a softer dollar and expectations of further U.S. interest rate cuts was partially offset by uncertainty over potential tariffs from U.S. President-elect Donald Trump.

Three-month copper on the London Metal Exchange (LME) held its ground at $9,241 a metric ton by 0128 GMT.

"Copper also found some support after the State Grid Corp of China pledged record spending this year. The country's largest network operator is likely to spend around 650 billion yuan ($88.71 billion) to help connect new wind and solar farms to the nations grid," ANZ Research said in a note.

China's State Grid will invest a record more than 650 billion yuan ($88.7 billion) in the country's power grid this year, state-run CCTV said on Wednesday, up from 600 billion seen in 2024.

U.S. economic data on Thursday indicated consumer spending remains strong, while the labor market is also on solid footing, giving the Federal Reserve room to maintain a slow pace in cutting interest rates this year.

Concerns also lingered over potential tariffs from the Trump administration, scheduled to take office on Monday, that would further stoke inflation.

The dollar index paused its rally following the release of core consumer price index data. It was last at 108.95 - down from the 26-month high of 110.17 touched on Monday.

A weaker dollar makes greenback-priced commodities cheaper for holders of other currencies.

Excluding volatile food and energy components, core CPI increased 3.2% on an annual basis, compared with an expected 3.3% rise.

LME aluminium remained flat at $2,637, tin lost 0.2% to $29,530, nickel was unchanged at $15,965, lead was flat at $1,971 and zinc gained 0.2% to $2,879.

The most-active copper contract on the SHFE was up 0.6% to 76,350 yuan ($10,366.79) a ton.

SHFE aluminium added 0.6% to 20,425 yuan a ton, nickel was up 0.7% to 128,420 yuan, zinc rose 0.3% to 23,815 yuan, lead gained 0.7% to 16,685 yuan and tin added 0.4% to 247,690 yuan.

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($1 = 7.3275 Chinese yuan)

(Reporting by Violet Li and Mei Mei Chu; Editing by Sherry Jacob-Phillips)