Metals: Copper Prices Advance as Dollar Ticks Lower
September 19 2018 - 12:08PM
Dow Jones News
By Georgi Kantchev
Copper prices inched higher in tandem with other metals
Wednesday, helped by a weaker dollar as investors weighed the
latest moves in the trade battle between the U.S. and China.
Copper futures for December delivery rose 0.4% to $2.7415 a
pound on the Comex division of the New York Mercantile Exchange.
Gold for December delivery climbed 0.6% to $1,210.50 a troy ounce
in New York.
The WSJ Dollar Index, which measures the currency against a
basket of 16 others, was last down 0.2%. A weaker dollar makes
greenback-denominated commodities less expensive for holders of
other currencies.
The Chinese government said Tuesday it plans to impose new
tariffs on $60 billion in U.S. exports, following President Trump's
Monday announcement of new import taxes on $200 billion in Chinese
goods.
But on Wednesday, Chinese Premier Li Keqiang defended the
rules-based global trading system and, in a nod to China's trade
tensions with the U.S., said problems should be resolved through
consultations, not unilateral action.
"Whilst we are naturally cautious as to whether this price
action represents a sea change and wary given recent intraday
volatility, we are of the opinion these metals have further upside
potential," said Alastair Munro of brokerage Marex Spectron.
Copper prices were also supported by signs of a tighter market.
Copper inventories in London Metal Exchange-registered warehouses
dropped 20,000 metric tons over the past week, taking the total
inventory withdrawal to more than 80,000 in the third quarter so
far, according to ING Bank.
Stephanie Yang contributed to this article.
Write to Georgi Kantchev at georgi.kantchev@wsj.com
(END) Dow Jones Newswires
September 19, 2018 11:53 ET (15:53 GMT)
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