FX.co ★ Copper Gains on US-China Trade Deal Hopes

Copper futures saw an increase of nearly 1%, reaching approximately $4.65 per pound on Monday. This upward movement extends the gains from the previous trading session, spurred by easing trade tensions between the US and China, which bolstered risk appetite across global markets. Over the weekend, trade officials from both nations convened in Switzerland, where significant progress in negotiations was reported. A joint statement is anticipated later today, potentially detailing preliminary agreements, including possible tariff reductions. In April, copper prices faced downward pressure owing to escalating fears of a global economic slowdown prompted by extensive US tariffs, while strong ore production from South America exacerbated concerns of oversupply. In a recent update, the International Copper Study Group has revised its forecast for this year's surplus, doubling it to nearly 300,000 tonnes, further dampening market sentiment.