Copper prices surged to nearly a three-week high driven by a weakening dollar and optimism surrounding potential stimulus measures in China. This increase was observed in both London and Shanghai markets. London Metal Exchange’s three-month copper registered a 0.3% rise, reaching $9,610.5 per metric ton, its highest level since mid-February. Meanwhile, the most active copper contract on the Shanghai Futures Exchange soared by 1.8% to 78,470 yuan per ton, marking a level unseen in over two weeks.

Market sentiment was largely influenced by expectations of additional stimulus initiatives from Chinese authorities aimed at boosting consumption and mitigating the economic repercussions of the ongoing trade tensions with the United States. The depreciation of the dollar index to a four-month low on the same day further buoyed copper prices, making dollar-denominated commodities more attractive to holders of other currencies.

Experts noted that the growth outlook for metals was also supported by increased European defense spending and the anticipation of a potential resolution to trade conflicts following the U.S. administration’s decision to roll back certain tariffs. In a move to ease trade tensions, President Donald Trump announced a temporary exemption of automakers from 25% tariffs on Canada and Mexico, provided they adhere to existing free trade regulations.

Apart from copper, other base metals also experienced positive movements in the market. Shanghai Futures Exchange saw gains in aluminum, zinc, nickel, lead, and tin, while London Metal Exchange witnessed increases in aluminum, zinc, lead, nickel, and tin prices.

The overall uptrend in copper prices reflects a complex interplay of global economic factors, including currency fluctuations, trade negotiations, and government policies. Analysts believe that continued developments in these areas will significantly impact the future trajectory of copper and other base metal prices.

The recent surge in copper prices underscores the metal’s significance as an essential industrial commodity with a wide range of applications across various sectors. As investors closely monitor market dynamics and geopolitical events, the future movement of copper prices will likely continue to be influenced by a combination of macroeconomic trends and policy decisions on both domestic and international fronts.