By David Hodari and Amrith Ramkumar 

Copper prices climbed Friday, boosted by reports that the U.S. and China are getting closer to reaching a broad trade agreement.

Copper for March delivery, the most-active futures contract, added 0.9% to $2.7985 a pound on the Comex division of the New York Mercantile Exchange. Prices are up more than 6% for the year, lifted by trade optimism and stable U.S. economic data, though they remain roughly 15% off their June four-year highs and have been buffeted by the monthslong tariff fight.

Industrial materials heavily used in construction and manufacturing are closely tied to the health of the global economy. China in particular is a vital source of demand, accounting for about half the world's copper consumption.

Slowing growth there amid trade tensions has hurt commodities, but a Wall Street Journal report that the world's two largest economies inched toward a broad agreement in Beijing this week lifted metals Friday. Top negotiators agreed to further talks next week in Washington.

"Broader macro events, particularly trade negotiations, are likely to dictate price action in the short term," ING strategists said in a note.

Still, some analysts remain cautious about the trade talks because sharp divisions remain on many items.

Elsewhere in base metals Friday, aluminum for delivery in three months climbed 0.5% to $1,859 a metric ton on the London Metal Exchange. Zinc rose 2.4% to $2,653, tin added 1.4% to $21,200, nickel finished up 1.6% to $12,400 and lead advanced 2% to $2,078.

Among precious metals, most-active Comex gold for April delivery edged up 0.6% to $1,322.10 a troy ounce, boosted by a weaker dollar that makes commodities cheaper for overseas buyers. Silver climbed 1.4% to $15.743, platinum added 2.2% to $806.90 and palladium ended up 1.5% to $1,407.20, extending a furious rally driven by supply shortages of the silvery-white metal used to scrub emissions in gasoline car engines.

Write to David Hodari at David.Hodari@dowjones.com and Amrith Ramkumar at amrith.ramkumar@wsj.com

 

(END) Dow Jones Newswires

February 15, 2019 14:46 ET (19:46 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.