FX.co ★ Copper Rises on US-China Trade Optimism

Copper futures experienced a 1% increase, reaching approximately $4.70 per pound on Tuesday. This rise builds on recent upward trends, fueled by optimism regarding the possibility of upcoming trade discussions between the United States and China, aimed at reducing tariff tensions. Amidst these developments, US President Donald Trump announced there are no immediate plans to engage in dialogue with President Xi Jinping this week; however, he expressed a willingness to consider reducing the significant 145% tariff on Chinese goods. Last week, China indicated a potential readiness to resume trade talks, but stressed that Washington would need to first remove all unilateral tariffs to demonstrate goodwill. Investors are also keenly observing progress on potential US trade agreements with India, Japan, and South Korea, which could influence broader market trends. Beyond trade-related optimism, copper prices are further bolstered by declining inventories in China, suggesting tighter supply conditions in one of the world's largest consumers of the metal.