Copper prices rallied to three-month highs on Thursday on a weaker dollar, concerns about supplies and speculative buying.
Copper three-month futures rose 1.6% at the London Metals Exchange to $9867 a ton, the highest since March 28.
The dollar index hit early 2022 lows amid increasing concerns about the Fe’s independence amid constant Trump attacks on Fed Chair Powell.
A weaker dollar makes commodities cheaper to holders of other currencies.
Price Premium Hints at Shortage
The price premium between the spot copper contract in London and the three-month future rose to $200 a ton from $101 on Wednesday.
Thus likely shows concerns about supply shortages compared to demand, especially in China.
Copper futures rose 0.6% at the Shanghai Exchange to 69,000 yuan a ton, the highest since June 11.
Technical Breach
A breach of the $9800 barrier on Thursday boosting technical purchases on copper London contracts.
Copper is up 22% at the London Exchange compared to November 2023 lows at $8105.
In the US, Copper Comex futures rose 2.7% to $5.05 a pound, raising its premium over the London contract to $1277 a ton, the highest since April.
Such a premium is due to expectations of Trump tariffs on the metal.
As for Other metals:
Aluminum rose 0.5% in London to $2575 a ton
Lead rose 0.6% to $2044
Nickel added 0.8% to $15,190
Zinc rose 1.4% to $2743
Tin rose 0.6% to $33400
Otherwise, the dollar index fell 0.5% as of 14:57 GMT to 97.1, with a session-high at 97.6, and a low at 97.00, the lowest in three years.
Copper futures rose 2.8% in American trade as of 14:54 GMT to $5.11 a pound.
