Copper prices surged today as easing tensions between the US and China lifted hopes in the metals market. The temporary trade agreement has given investors confidence, causing industrial metals to rise. Gold, however, fell more than 2% as market sentiment shifted away from safe assets.
Key Takeaways
- Copper prices surged to $9,518 per metric ton on the London Metal Exchange.
- Gold price drop of 2.1% to $2,307 per ounce as demand weakens.
- US-China trade deal includes 90-day tariff reductions to ease tensions.
- Speculators continue to increase bullish positions on copper futures.
Market Context: US-China Trade Deal Boosts Copper Prices Outlook
The US and China have agreed to temporarily reduce import tariffs for 90 days. This move has helped ease global trade tensions.
This decision boosted global investor confidence and drove up prices of key industrial metals. Treasury Secretary Scott Bessent noted that both countries want to avoid separating their economies. While the deal is short-term, it has sparked positive reactions in commodity markets.
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Technical Overview: Copper Inventory Drop Drives Trading Build
According to the Shanghai Futures Exchange, copper stockpiles dropped by 8,602 tonnes, reaching just 80,705 tonnes—the lowest level seen since early January. The fall is partly due to redirected copper supplies heading to the US, influenced by recent trade policies.
Speculators are also showing more confidence in copper. The CFTC said traders added 3,325 long positions, bringing the total to 23,338. This marks four straight weeks of increased optimism.
In contrast, gold net longs fell by 3,558 lots, the weakest since February. This signals lower interest from traders due to higher prices and stronger market confidence.
Analyst Views: Optimism with Caution
Experts Ewa Manthey and Warren Patterson from ING believe that the trade truce has improved short-term market mood. However, since the tariff cuts only last for 90 days, uncertainty remains high.
Improved political relations, such as the recent ceasefire between India and Pakistan, have also reduced global risk levels. This reduced the demand for gold as a safe-haven, causing the gold price to drop.
Conclusion: Short-Term Relief, Long-Term Questions
The recent tariff relief has caused copper prices to surge, giving a boost to industrial metals.
However, the limited timeframe of the trade deal means volatility could return. Investors will be closely watching upcoming developments to see if these gains can last.
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FAQs About Copper Prices and Market Trends
1. Why did copper prices surge recently?
Copper prices surged due to easing trade tensions between the US and China. A temporary trade deal reducing tariffs boosted investor confidence, driving up copper and other industrial metals.
2. How has the US-China trade deal affected gold prices?
The easing of trade tensions reduced demand for gold as a safe-haven asset, leading to a drop in its price. Gold prices have decreased by more than 2% amid improved market sentiment.
3. What are the current copper inventory levels?
Copper inventories on the Shanghai Futures Exchange dropped by 8,602 tonnes, reaching 80,705 tonnes—the lowest level since January 2025. This decline is linked to the diversion of copper supplies to the US due to tariff changes.
4. How have speculators responded to the copper market?
Speculators have shown increased interest in copper, with net long positions growing by 3,325 lots, reaching a total of 23,338 lots. This indicates a continued bullish outlook on copper prices.
5. Will copper prices continue to rise?
Copper prices may continue to rise in the short term, driven by reduced trade tensions and tightening inventories. However, uncertainty remains, as the trade deal is temporary, and longer-term stability depends on future global economic conditions.
