Copper prices on the London Metal Exchange and the Shanghai Futures Exchange rose on Tuesday on the back of a weaker U.S. dollar, while uncertainty over U.S. trade talks with major partners persisted.
The LME three-month copper HG1! gained 0.94% to $9,961.5 per metric ton by 0703 GMT, after touching $9,984 earlier, its highest since March 27.
The SHFE most-traded copper contract HG1! gained 1.09% to 80,640 yuan a ton, after reaching 80,760 yuan a ton, a high not seen since March 28.
“The worries on the rising U.S. government deficit have weakened the dollar, (which is) supportive to commodities, and my focus for this week will be on the U.S. trade talks,” said a Beijing-based metals analyst from a futures company.
The dollar indexDXY, against a basket of currencies including the yen and the euro, fell 0.35% to 96.86 on Monday, on track for its sixth straight month of losses, and set to mark its worst half-year since the 1970s.
A softer dollar makes greenback-priced commodities less expensive for buyers using other currencies.
The U.S. and China had resolved issues around shipments of Chinese rare earth minerals and magnets to the U.S., further modifying a May deal in Geneva, the U.S. Treasury Secretary Scott Bessent had said last week.
Countries could still face sharply higher tariffs on July 9 even if they are negotiating in good faith, Bessent said, adding that any potential extensions will be up to Trump.
Source: Reuters
