NEW YORK: Copper and other base metals rose on Thursday, supported by growing expectations of a Federal Reserve rate cut and optimism over a potential trade truce between the US and China.
Three-month copper on the London Metal Exchange added 0.2 per cent to US$9,695 per metric ton as of 0148 GMT. The most-traded copper contract on the Shanghai Futures Exchange gained 0.4 per cent to 78,450 yuan (US$10,923.29) a ton.
“There is some optimism about a possible trade deal with China. The deadline for that is August 12th, and the reports we are seeing are that the discussions are proceeding pretty well,” said Marex analyst Edward Meir.
“In other geopolitical developments (is) the possible summit meeting between Trump, Putin and Zelensky, which also should help weaken the dollar and give commodities a bit (of a) lift.”
On Tuesday, US President Donald Trump said the US was close to a deal with China and that he would meet Chinese President Xi Jinping before the end of the year if an agreement is struck.
The dollar index languished near a more than one-week low after a surprisingly weak US jobs data last week triggered bets for Fed rate cuts from September.
A weaker dollar makes greenback-denominated assets more affordable to holders of other currencies. Investors are closely watching the developments in Chile, the world’s largest copper producer, after its El Teniente copper mine collapsed after an earthquake last week, killing six people.
Copper miner Codelco has sought permission from Chile’s mining regulator to reopen a part of its flagship mine, two sources with knowledge of the matter said.
Among other metals in London, aluminium climbed 0.9 per cent to US$2,631.50 a ton, nickel rose 0.1 per cent to US$15,145, lead gained 0.4 per cent to US$2,001.50, tin added 0.1 per cent to US$33,380, and zinc advanced 0.7 per cent to US$2,808.
SHFE aluminium rose 1 per cent to 20,800 yuan, nickel gained 0.4 per cent to 121,090 yuan, lead climbed 0.3 per cent to 16,880 yuan, tin added 0.1 per cent at 267,320 yuan, and zinc advanced 1.3 per cent to 22,610 yuan.
© New Straits Times Press (M) Bhd
