Copper on MCX settled up 0.04% at 409.75 after the biggest rise in three months in the previous session on investor hopes that Chinese measures to boost lending would be followed by progress in trade talks with the United States.
Prices were also supported by a weaker dollar after Federal Reserve Chairman Jerome Powell hinted that the pace of U.S. interest rate rises could slow. A weaker dollar makes metals cheaper for buyers using other currencies.
Support also seen after US and Chinese officials are meeting for the first face-to-face talks since the two countries agreed in December to a 90-day truce in a trade war that investors fear will curb global economic growth.
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China said on Monday it had the “good faith” to work with the United States to resolve trade frictions. U.S. Secretary of State Wilbur Ross said a good settlement was likely on immediate trade issues but an agreement on structural trade issues and enforcement would be harder.
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✅ MCX Copper trading zone 407—418
✅ Copper gained as investor sentiment was bolstered by China’s announcement of a new round of trade talks with the United States.
✅ China’s factory activity contracted for the first time in over two years in December.
✅ China’s services sector extended its solid expansion in December, offering some cushion for the slowing economy.
Reserves came in at $3.07 trillion at the end of December, up from $3.06 trillion in November, according to the People’s Bank of China. Reserves in December exceeded market estimates of $3.07 trillion.
The SAFE attributed the rising reserves to stronger non-dollar denominated currencies, price gains of treasury bonds of major countries, and asset price changes.
