Copper prices rose for the third consecutive session Thursday, lifted by strong Chinese housing data and hopes for a trade deal between the world’s two largest economies.
Copper for December delivery climbed 1.6% to $2.7525 a pound on the Comex division of the New York Mercantile Exchange. Prices have risen this week, though they are about 16% off their June four-year highs on worries that a slower Chinese economy will crimp demand for materials widely used in manufacturing and construction.
Data released on Thursday showed Chinese housing prices rose in October, though, and some investors think copper consumption will stay relatively steady, potentially leading to supply shortages and higher prices.
“The outlook for copper demand in the mid- to long-term remains robust despite current trade frictions between China and the United States,” said John Meyer, an analyst at SP Angel.
Recent reports that China and the U.S. are making progress on resolving a monthslong tariff fight have led to some optimism in metals markets.
Elsewhere in base metals, aluminum for delivery in three months on the London Metal Exchange fell 0.4% to $1,935 a metric ton. Zinc rose 2.9% to $2,573.50, tin was up 0.5% at $19,400 and nickel added 1.1% to $11,430. Lead dipped 0.2% to $1,949.
Among precious metals, gold for December delivery edged up 0.3% to $1,214.20 a troy ounce. A stronger dollar and higher interest rates have hurt the precious metal throughout the year, pushing it down about 7%. A stronger U.S. currency makes commodities denominated in dollars more expensive for overseas buyers, while higher Treasury yields make gold less attractive because it offers no yield.
Most-active silver futures added 0.5% to $14.145 a troy ounce. Platinum was up 0.3% to $836 and palladium fell 0.2% to $1,108.30.
