Copper Climbs on Fresh Trade Hopes
16 February 2019 - 7:01AM
Dow Jones News
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.