Copper Rises on Report of Easing Trade Tensions

By Amrith Ramkumar and David Hodari

Copper prices rose Tuesday after Bloomberg reported that the U.S. and China are trying to restart talks to defuse the trade dispute between the two nations.

Copper for September delivery rose 0.9% to $2.8170 a pound on the Comex division of the New York Mercantile Exchange, erasing earlier losses following the Bloomberg report. Prices have rebounded slightly since hitting their lowest level in more than a year earlier this month, though they are still almost 15% below their June four-year highs.

Worries that a trade war will slow the Chinese economy have pummeled copper prices in recent weeks. The red metal fell early Tuesday after data showing China's official manufacturing purchasing managers' index fell to a five-month low of 51.2 in July from June's 51.5. July's reading came in slightly lower than economists' expectations.

Some analysts fear that protectionism will lower demand for the material, which is used in everything from air conditioners to electric cars, so some hope that eased trade tensions could help copper rebound.

Among precious metals, gold for December delivery swung between small gains and losses and was recently down 0.1% at $1,230.30 a troy ounce. Prices are around their lowest level in more than a year, hurt by a stronger dollar that has made gold more expensive for overseas buyers and worries that higher Treasury yields will make the metal less attractive to some investors.

Write to Amrith Ramkumar at [email protected] and David Hodari at [email protected]