Copper pushes to near three-month peak on weak dollar, speculators
Copper prices jumped to their highest in nearly three months on Thursday, propelled by a weak dollar, concerns about supply and buying by speculators after key technical levels were broken.
Three-month copper on the London Metal Exchange gained 1.6% to $9,867 a metric ton by 1000 GMT, its strongest since March 28.
"What is key for us is dollar weakness and that is trending lower, which is supportive for our space," said Alastair Munro, senior metals strategist at Marex.
The dollar index sank to its lowest since early 2022 as concerns about the future independence of the U.S. Federal Reserve undermined faith in the soundness of the country's monetary policy.
A softer dollar makes commodities priced in the U.S. currency less expensive for buyers using other currencies.
The premium for the LME cash copper contract over the three-month rebounded to $200 a ton from $101 on Wednesday but down from $280 on Monday, its highest since November 2021.
While traders expect deliveries of copper into LME warehouses to ease a tight situation, they have not yet materialised.
"The market is still positioned short out of July and struggling to find offers this morning," Munro said.
Copper buying was buoyant among Chinese participants, he added, noting that long positions and open interest are rising on the Shanghai Futures Exchange.
The most-traded copper contract on ShFE rose 0.6% to 79,000 yuan ($11,022.74) per ton, its highest since June 11.
LME copper has held below the $9,800 level for several months and a break above there on Thursday triggered automatic buy orders, a trader said.
LME copper has gained 22% since hitting its lowest since November 2023 at $8,105 in April.
U.S. Comex copper futures climbed 2.7% to $5.05 a lb, bringing the premium of Comex over LME copper to $1,277 a ton, its highest since April 28.
Higher U.S. copper prices are based on expectations of U.S. tariffs being imposed on the metal, triggering a flow of metal to Comex warehouses.
Among other metals, LME aluminium rose 0.5% to $2,575 a ton, lead gained 0.6% to $2,044, nickel added 0.8% to $15,190, zinc climbed 1.4% to $2,743.5, while tin rose 0.6% to $33,400. ($1 = 7.1670 Chinese yuan )
(Reporting by Eric Onstad Editing by Frances Kerry)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
an hour ago
- Khaleej Times
Trump says US ending trade discussions with Canada over digital tax
President Donald Trump said on Friday the US is immediately ending trade talks with Canada in response to the country's digital services tax on technology companies, calling it a "direct and blatant attack on our country." "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump wrote in a post on Truth Social. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven-day period."
UAE Moments
2 hours ago
- UAE Moments
♍ Virgo: Daily Horoscope for June 28th, 2025
Dear Virgo, today is a canvas waiting for your meticulous brushstrokes. The universe invites you to embrace the beauty in details, as the Moon in Leo squares Venus in Taurus. Love Horoscope Today, Virgo, your love life may feel like a well-organized library, where every book is in its rightful place. The Moon in Leo's square with Venus in Taurus might stir some emotions, but your natural inclination for order will help you navigate any relationship turbulence. Remember, love is not always about perfection; it's about connection and understanding. Embrace the imperfections in your partner and yourself. A spontaneous date night or a heartfelt conversation can bring warmth and depth to your relationship, reminding you that love is a beautifully imperfect journey. Career Horoscope In the realm of work, Virgo, your analytical prowess shines brightly today. Mercury's trine with Neptune enhances your ability to think creatively while maintaining a logical approach. This is an excellent time to tackle complex projects or brainstorm innovative solutions. Your colleagues may turn to you for guidance, appreciating your meticulous attention to detail. Embrace this role with confidence, knowing that your efforts contribute significantly to the team's success. Remember, your work is a reflection of your dedication and intellect. Let your passion for precision inspire those around you. Health Horoscope Your well-being today is like a finely tuned instrument, Virgo. The celestial energies encourage you to pay attention to the small details of your health routine. Perhaps it's time to revisit your diet or exercise plan, ensuring everything is in harmony. Mercury's trine with Neptune offers a perfect opportunity for meditation or a creative activity that soothes your mind. Remember, well-being is a balance of body, mind, and spirit. Take a moment to breathe deeply, appreciate the present, and let go of any anxieties. Your meticulous nature is your ally in maintaining harmony. Finance Horoscope Financially, Virgo, today is a day to focus on the details. With the Moon in Leo squaring Venus in Taurus, you might feel a pull towards indulgence. However, your innate ability to manage resources wisely will keep you grounded. Consider reviewing your budget or financial plans, ensuring everything aligns with your long-term goals. Perhaps there's an opportunity to save or invest that you've overlooked. Trust your logical mind and meticulous nature to guide you towards financial stability. Remember, small, consistent steps lead to significant achievements.
UAE Moments
2 hours ago
- UAE Moments
♉ Taurus: Daily Horoscope for June 28th, 2025
Today, Taurus, the universe invites you to embrace the dance of life with grace and curiosity. As you navigate the day's energies, remember that every challenge is an opportunity for growth. Love Horoscope Today, dear Taurus, the Moon in Leo squares Venus in your sign, stirring a pot of emotions in your love life. You might feel a tug-of-war between your desire for stability and a sudden craving for excitement. Embrace this as an opportunity to spice things up with your partner or, if single, to explore new connections. Remember, love is a dance, sometimes slow and steady, other times wild and free. Let your heart lead the way, and trust that vulnerability can be a strength. Career Horoscope In the realm of work, Taurus, the stars encourage you to tap into your creative side. Mercury's alignment with Neptune inspires innovative thinking and problem-solving. Whether you're tackling a challenging project or brainstorming new ideas, let your imagination run wild. Your steadfast nature combined with a touch of creativity can lead to breakthroughs. Remember, every masterpiece starts with a single stroke. Be patient with yourself and trust the process, knowing that your efforts will bear fruit in time. Health Horoscope With Mercury in Leo trine Neptune in Aries, your well-being is highlighted by a surge of creative energy. This is a perfect day to indulge in activities that nourish your soul and body, like painting, yoga, or a walk in nature. Listen to your inner voice and let it guide you to what feels good. Remember, self-care is not a luxury but a necessity. Embrace the joy of being present in the moment, and let your spirit soar with the possibilities that each breath brings. Finance Horoscope Financial matters take center stage today as the cosmic energies encourage you to evaluate your resources. It's a great time to review your budget and consider long-term investments. With your natural wisdom, you can find innovative ways to enhance your financial stability. Perhaps it's time to explore new income streams or reassess your spending habits. Trust in your ability to make sound decisions, and remember that abundance flows when you align with your true values.
