METALS : Copper Rises on Hopes of Easing Trade Tensions

By Amrith Ramkumar and David Hodari

Copper prices rose to their highest level in three weeks Tuesday after Bloomberg reported that the U.S. and China were trying to restart talks to defuse the trade dispute between the two nations.

Front-month copper for August delivery added 1.4% to $2.8190 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 14% below their June four-year highs. Even with Tuesday's gain, copper had its worst month since September 2017 in July.

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, front-month gold for August delivery swung between small gains and losses and closed up 0.2% at $1,223.70 a troy ounce. Prices have fallen in four consecutive months and 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]