Copper Slightly Lower as Investors Await Fresh Trade Signals
September 25 2018 - 3:20PM
Dow Jones News
By David Hodari and Amrith Ramkumar
Copper prices swung between small gains and losses before
closing slightly lower on Tuesday, with traders looking ahead to
the next trade updates from the U.S. and China.
Front-month copper for September delivery closed down 0.4% at
$2.8035 a pound on the Comex division of the New York Mercantile
Exchange. Prices have rebounded lately after entering bear-market
territory this summer, though they are still well below their June
four-year highs amid worries that a tariff fight between the U.S.
and China will weaken the global economy and limit consumption.
China is the world's largest consumer of industrial metals
broadly, accounting for about half of global copper demand.
Although the U.S. and China have laid out plans to end their
tariff fight ahead of planned November meetings between leaders
from both countries, the latest duties from both sides took effect
on Monday.
China also canceled trade talks that were planned for this
week.
Analysts are also keeping an eye on the dollar, which has fallen
lately after hitting a 15-month high last month. A weaker dollar
makes commodities cheaper for overseas buyers and has helped
materials stabilize following punishing drops in the summer. The
WSJ Dollar Index, which tracks the dollar against a basket of 16
other currencies, was down less than 0.1% Tuesday.
Among precious metals, front-month gold for September delivery
added less than 0.1% to $1,200 a troy ounce. Prices have fallen
about 8.1% this year, hurt by the dollar's stability and higher
short-term Treasury yields that have made gold less attractive to
some investors. Traders were looking ahead to Wednesday's statement
from the Federal Reserve for the latest reading on the central
bank's plan for interest-rate increases.
Elsewhere in precious metals, most-actively traded silver
futures rose 1.1% to $14.493 a troy ounce. Platinum was down 0.8%
at $822.90, while palladium climbed 0.2% to $1,053.80 in a 10th
straight session of gains.
On the London Metal Exchange, aluminum for delivery in three
months inched up 0.4% to $2,067.50 a metric ton. Zinc dropped 1.9%
to $2,515, tin was down 0.1% at $18,900 and nickel edged down less
than 0.1% to $12,950. Lead fell 1.6% to $2,009.50.
Write to David Hodari at David.Hodari@dowjones.com and Amrith
Ramkumar at amrith.ramkumar@wsj.com
(END) Dow Jones Newswires
September 25, 2018 15:05 ET (19:05 GMT)
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