(Adds quotes, updates prices)
By Mai Nguyen
SINGAPORE, Aug 23 (Reuters) - Copper prices inched up onFriday, tracking signs of progress in the U.S.-China tradenegotiations, but uncertainty ahead of Fed Chair Jerome Powell'sspeech at a gathering of central bankers capped gains.
U.S. and Chinese trade negotiators held a "veryconstructive" call on Wednesday and the United States is stillplanning for a round of in-person talks in September, said WhiteHouse economic adviser Larry Kudlow.
Prices of three-month copper on the London Metal Exchange(LME), were up 0.5% at $5,709.50 a tonne, as of 0706GMT, while Shanghai Futures Exchange's (ShFE) most active coppercontract rose 0.1% to 46,400 yuan ($6,551.27) a tonne.
The LME copper prices, however, were poised for a weeklydecline.
The market is closely watching U.S. Federal Reserve ChairmanJerome Powell's speech at the Jackson Hole seminar due later onFriday for clarity on monetary policy, while a weaker yuancould dampen metals demand from top consumer China.
"While a dovish tilt of the Fed will not reverse thedirection for the sector, we see prices stabilising next week inabsence of any other fresh negative factor," said ANZ anaystSoni Kumari.
"Chinese PMI (purchasing managers index) numbers will be thenext clue investors will be eyeing to reconfirm the slowdown inmanufacturing sector," Kumari said.
FUNDAMENTALS
* PRICES: LME aluminium rose 0.2%, nickeladvanced 0.4%, zinc increased 0.9% while leadjumped 1%. ShFE aluminium dipped 0.4%, zincincreased 0.2% and nickel rose 0.6%.
* NICKEL: The premium of LME cash nickel over thethree-month contract <MNI0-3> surged to $50 a tonne, its highestsince April 2009, indicating supply shortages nearby.
* INDONESIA: Indonesia's Nickel Miners Association said onThursday it will continue asking the government to stick to its2022 timetable for a nickel ore export ban as President JokoWidodo deliberates on possibly implementing the measure earlier.
* TIN: LME tin is on track for an 11th straight weekof decline, having hit its lowest since 2016 in the previoussession. ShFE tin dropped to as low as 128,920 yuan atonne, a seven-week low.
* VEDANTA COPPER: The Zambian government is determined to"urgently secure" an investor for Konkola Copper Mines oncecourt processes over the disputed liquidation of the mine areconcluded, the mines minister said on Thursday.
* "We see the lean speculative positioning in copper atcurrent price level as the sweet spot. Supply challenges incopper remain in place. We expect any supportive news cantrigger short-covering," added Kumari.
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PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS($1 = 7.0826 Chinese yuan renminbi)(Reporting by Mai Nguyen; Editing by Sherry Jacob-Phillips andSriraj Kalluvila)