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Business Recorder
3 days ago
- Business
- Business Recorder
Copper hits one-week high on Chinese buying
LONDON: Copper climbed to a more than one-week high on Friday, driven by Chinese buyers, hopes for a US-China trade deal, and higher risk appetite among other investors. Three-month copper on the London Metal Exchange gained 0.8% to $9,745 per metric ton by 1400 GMT, its strongest since July 9. LME copper has eased from its three-month peak of $10,200.50, hit on July 2, and Chinese participants are buying on dips, Marex senior base metals strategist Alastair Munro said. 'Add to that chatter on wires around a potential US-Sino trade agreement in months surprise remains on the topside.' China's commerce minister said on Friday the country, the world's biggest metals consumer, wants to bring its trade ties with the US back to a stable footing. Hopes for more metals-intensive economic support were buoyed after an official with the industry ministry said China would issue action plans to stabilise growth in the machinery, autos, and electrical equipment sectors. The most-traded copper contract on the Shanghai Futures Exchange rose 0.7% to 78,410 yuan ($10,922.74) a ton. 'LME copper stocks have been rising, mainly at its Asia warehouses as some traders may be betting on more buying by China with recent price drops,' a Shanghai-based metals analyst at a futures company said. Also supporting the market was higher risk appetite among investors in general as stock markets moved higher, and a weaker dollar. A softer dollar makes commodities priced in the greenback less expensive for buyers using other currencies. US Comex copper futures climbed 1.3% to $5.58 a lb, bringing the premium of Comex over LME copper to $2,554 a ton. Nickel was the weakest performing LME metal on rising inventories and weak demand for the metal mainly used to make stainless steel and electric vehicle batteries. It was up 0.5% to $15,170 a ton after earlier sinking into the red.


Time of India
4 days ago
- Business
- Time of India
Safe-haven gold gains on global uncertainty, weaker dollar
Gold prices rose on Friday as a weaker U.S. dollar and ongoing geopolitical and economic uncertainty boosted demand for the safe-haven metal, while platinum prices eased after reaching their highest level since 2014. Spot gold rose 0.5% to $3,353.80 per ounce, as of 0947 a.m. EDT (13:47 GMT), after falling 1.1% in the previous session. Explore courses from Top Institutes in Select a Course Category Data Analytics MCA Public Policy CXO Leadership Data Science Management Healthcare Design Thinking Digital Marketing Technology MBA others Product Management Artificial Intelligence Degree Project Management Operations Management Cybersecurity Finance PGDM healthcare Others Data Science Skills you'll gain: Data Analysis & Visualization Predictive Analytics & Machine Learning Business Intelligence & Data-Driven Decision Making Analytics Strategy & Implementation Duration: 12 Weeks Indian School of Business Applied Business Analytics Starts on Jun 13, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play this game for 1 minute and see why everyone is addicted. Undo U.S. gold futures were also up 0.5% to $3,360.50. "In the precious metals space, there are gains across the board, courtesy of a weaker dollar," said Marex analyst Edward Meir. "We do not see much of a bearish case in gold over the medium-term given all that is going on, including out-of-control U.S. spending, lingering trade tensions, inflation uncertainty and the constant Fed bashing thrown in lately for good measure." Live Events The dollar was down 0.5% for the day. A weaker dollar tends to make gold cheaper for buyers holding other currencies. Earlier this week, Trump said he was not planning to fire Federal Reserve Chair Jerome Powell. Still, he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates. Market participants are anticipating two U.S. rate cuts by the end of this year, totalling 50 basis points. Gold thrives during economic uncertainty, and lower interest rates boost investor demand as it is a non-yielding asset. On the tariff front, Indonesia is still negotiating the details of its recently reached trade deal with the United States. Meanwhile, U.S. Treasury Secretary Janet Yellen told the Japanese Prime Minister that their countries can get a "good agreement". Spot platinum fell 0.7% to $1,448.03 per ounce, after hitting its highest since August 2014 earlier today. Palladium climbed 0.7% to $1,289.50, its highest since June 2023, and silver added 0.5% to $38.31. "In precious metals, the carnival has moved on from safe-haven gold to silver, platinum and palladium as pro-growth, industrial alternatives," said Adrian Ash, head of research at online marketplace BullionVault.


Reuters
5 days ago
- Business
- Reuters
Safe-haven gold gains on global uncertainty, weaker dollar
July 18 (Reuters) - Gold prices rose on Friday as a weaker U.S. dollar and ongoing geopolitical and economic uncertainty boosted demand for the safe-haven metal, while platinum prices eased after reaching their highest level since 2014. Spot gold rose 0.5% to $3,353.80 per ounce, as of 0947 a.m. EDT (13:47 GMT), after falling 1.1% in the previous session. U.S. gold futures were also up 0.5% to $3,360.50. "In the precious metals space, there are gains across the board, courtesy of a weaker dollar," said Marex analyst Edward Meir. "We do not see much of a bearish case in gold over the medium-term given all that is going on, including out-of-control U.S. spending, lingering trade tensions, inflation uncertainty and the constant Fed bashing thrown in lately for good measure." The dollar (.DXY), opens new tab was down 0.5% for the day. A weaker dollar tends to make gold cheaper for buyers holding other currencies. Earlier this week, Trump said he was not planning to fire Federal Reserve Chair Jerome Powell. Still, he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates. Market participants are anticipating two U.S. rate cuts by the end of this year, totalling 50 basis points. Gold thrives during economic uncertainty, and lower interest rates boost investor demand as it is a non-yielding asset. On the tariff front, Indonesia is still negotiating the details of its recently reached trade deal with the United States. Meanwhile, U.S. Treasury Secretary Janet Yellen told the Japanese Prime Minister that their countries can get a "good agreement". Spot platinum fell 0.7% to $1,448.03 per ounce, after hitting its highest since August 2014 earlier today. Palladium climbed 0.7% to $1,289.50, its highest since June 2023, and silver added 0.5% to $38.31. "In precious metals, the carnival has moved on from safe-haven gold to silver, platinum and palladium as pro-growth, industrial alternatives," said Adrian Ash, head of research at online marketplace BullionVault.


Business Recorder
5 days ago
- Business
- Business Recorder
Copper hits one-week high on Chinese buying, hopes for trade deal
LONDON: Copper climbed to a more than one-week high on Friday, driven by Chinese buyers, hopes for a U.S.-China trade deal, and higher risk appetite among other investors. Three-month copper on the London Metal Exchange gained 0.6% to $9,720 per metric ton in official open-outcry trading after touching its strongest since July 10. LME copper has eased from its three-month peak of $10,200.50, hit on July 2, and Chinese participants are buying on dips, Marex senior base metals strategist Alastair Munro said. 'Add to that chatter on wires around a potential U.S.-Sino trade agreement in months ahead…The surprise remains on the topside.' China's commerce minister said on Friday the country, the world's biggest metals consumer, wants to bring its trade ties with the U.S. back to a stable footing. Hopes for more metals-intensive economic support were buoyed after an official with the industry ministry said China would issue action plans to stabilise growth in the machinery, autos, and electrical equipment sectors. The most-traded copper contract on the Shanghai Futures Exchange rose 0.7% to 78,410 yuan ($10,922.74) a ton. Rising inventories, stronger dollar keep copper under pressure 'LME copper stocks have been rising, mainly at its Asia warehouses as some traders may be betting on more buying by China with recent price drops,' a Shanghai-based metals analyst at a futures company said. Also supporting the market was higher risk appetite among investors in general as stock markets moved higher, and a weaker dollar. A softer dollar makes commodities priced in the greenback less expensive for buyers using other currencies. U.S. Comex copper futures climbed 1.5% to $5.60 a lb, bringing the premium of Comex over LME copper to $2,603 a ton. Among other metals, LME aluminium rose 0.7% to $2,595 a ton, zinc advanced 1.6% to $2,782, lead gained 1.3% to $1,999, nickel was little changed at $15,100 and tin rose 0.6% to $33,200.
Business Times
09-07-2025
- Business
- Business Times
Trump's 50% tariff shocker stokes copper market mayhem
[SINGAPORE] Copper prices have reacted furiously after US President Donald Trump stunned markets with a 50 per cent tariff on copper imports – a 'watershed moment' that sent US futures to record highs, roiled London and Shanghai contracts, and left traders nonplussed. New York-listed copper futures spiked as much as 17 per cent after the announcement on Tuesday (Jul 8) as traders scrambled to lock in prices ahead of the anticipated tariff. Meanwhile, London and Shanghai futures declined more than 1 per cent, reflecting expectations of reduced US demand. The surge in US copper prices was however short-lived, given the lack of clarity on how and when the tariff would be implemented. US officials alluded to late July or early August as the start date. Citi Research expects an official confirmation of a 50 per cent rate within weeks and implementation within 30 days. Marex's senior analyst Edward Meir said that the tariff could come into effect much later than the official hints, given how critical copper is to the US economy. 'A 50 per cent tariff on copper will be a massive hit for the average US consumer,' he noted. In a report, Citi said: 'We think this is a watershed moment for the copper market in 2025 as imminent flagged tariff implementation should abruptly close the window for further significant US-bound copper shipments (possibly for the rest of 2025).' Meir added that Chile, the single biggest copper supplier to the US, will 'certainly make a strong and emphatic argument to get this rate lowered', especially given that Chile is one of the few countries that actually runs a trade deficit with the US. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Multiple factors at play Marcus Garvey, Macquarie's head of commodities strategy, noted that the impact will hinge not just on the tariff rate, but more heavily on the details, such as which types of copper the levy applies to and whether there will be any grace period before it is implemented. 'Ultimately, we think a 50 per cent tariff is unlikely to be sustained. Nevertheless, we would not expect the full tariff to be priced in because the excess inventories in the US mean marginal spot flows would not need to be incentivised by the Chicago Mercantile Exchange (CME) and London Metal Exchange (LME) price spread,' he added. After Trump's announcement, the price spread between the Comex and LME copper futures skyrocketed: for the October delivery month, the arbitrage soared to almost US$3,000 per tonne. Citi said the Comex-LME arbitrage is likely to price in a much lower effective rate than 50 per cent, due to the recent surge in US copper inventories and the expectation that major exporters to the US will eventually secure partial exemptions or reduced tariffs. Marex's Meir noted that some copper traders who had held back deliveries to the US could benefit from the market turmoil. Although an estimated 400,000 to 500,000 tonnes of copper have been imported into the US this year, only about half has been delivered to the CME. 'A good portion of this metal was possibly held back until the actual announcement was made. Now that it has, we would not be surprised to see the pace of deliveries into the CME pick up,' Meir added. Thurlestone Shipping's freight analyst Lennon Lim noted on Wednesday that copper shipments to the US were as per normal. He expects spot demand for shipments from Chile and Peru to the US Gulf Coast to remain supported in the near term, but for the volumes to taper off after the tariff enforcement. While the US accounts for around 2 per cent of the total destination share of copper cargoes tracked, the cargoes would likely be redirected to China or Japan – which together account for approximately 70 per cent of destination share – once the tariff is realised, he added.