By Christopher Alessi and Amrith Ramkumar 

Copper prices rebounded on Tuesday, surging after the U.S. and China announced fresh tariffs that were less severe than some investors had feared.

Front-month copper for September delivery rose 3% to $2.7120 a pound on the Comex division of the New York Mercantile Exchange, its largest one-day climb since April 18. Even with the advance, worries about tariffs slowing the Chinese economy and lowering commodity consumption have sent prices 18% from their June four-year highs in recent weeks.

But some analysts said the U.S. applying a 10% duty on Chinese imports starting Sept. 24 was a more measured response than expected. Some had projected a 25% duty, but the Trump administration said the fresh tariffs will only rise to that level at the end of the year.

Copper prices extended gains after China said it would retaliate with tariffs ranging from 5% to 10% on $60 billion of U.S. goods, also going into effect Sept. 24.

Some analysts remain optimistic that the two sides will resolve their monthslong spat ahead of planned meetings between country leaders in November. China is the world's largest consumer of materials, accounting for about half of global copper demand, so tariffs and signs of a weakening economy have swung industrial metals prices throughout the year.

Among precious metals, front-month gold for September delivery edged down 0.2% to $1,196.80 a troy ounce. The dollar's strength and higher short-term Treasury yields have hurt prices this year, and analysts are awaiting next week's Federal Reserve meeting to see how central-bank policy affects the currency and bond markets. A stronger dollar makes dollar-denominated commodities more expensive for overseas buyers, while higher bond yields tend to make gold less attractive to investors.

The gold price "is continuing its slow dance at around $1,200 per ounce, without a clear direction -- investors are already waiting for next week's Fed meeting, where the board of the U.S. central bank is expected to hike rates," said Carlo Alberto de Casa, chief analyst at ActivTrades. "Any comments about the 2019 monetary policy could be a new significant driver for the precious metal," he added.

Elsewhere in precious metals, most actively traded silver futures were down 0.3% at $14.185 a troy ounce. Platinum rose 1.7% to $814.90, and palladium added 2.8% to $1,004.80.

On the London Metal Exchange, aluminum for delivery in three months added 0.1% to $2,035 a metric ton. Zinc rose 1.3% to $2,349, tin was down 0.3% at $18,975, nickel rose 1.3% to $12,400 and lead edged down 0.2% to $2,067.

Write to Christopher Alessi at christopher.alessi@wsj.com and Amrith Ramkumar at amrith.ramkumar@wsj.com

(END) Dow Jones Newswires

September 18, 2018 14:49 ET (18:49 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.