Copper Rebounds After Entering Bear-Market Territory

Beckett Bronze manufactures bronze bearings, bronze bushings, and bronze bars. Custom made cast bronze bearings, bushings, and bars are made from over 50 alloys in our own foundry.


Copper prices rebounded Thursday after entering bear-market territory for the first time since November 2016 a day earlier, boosted by signs of easing trade tensions.

Front-month copper for August delivery rose 2.2% to $2.6135 a pound on the Comex division of the New York Mercantile Exchange, snapping a four-session losing streak. Prices are down 21% from their June four-year highs, hurt by worries that protectionism will slow the global economy and lower demand for materials used in construction and manufacturing.

But on Thursday, China and the U.S. reached a modest breakthrough in their standoff over trade, saying they would hold lower-level talks later this month on the spiraling dispute.

Copper and other industrial metals have been particularly sensitive to weak economic signals from China, which accounts for about half the world’s demand of many materials.

Analysts have said selling has accelerated with metals moving through key technical levels, so some expect volatility to continue on the latest trade news.

“People argue that selling is premature, but whether or not it’s oversold it seems that these selling factors could linger for a couple of days or even weeks,” said Xiao Fu, head of commodities research at BOCI Global Commodities.

Easing trade signals also hurt the dollar Thursday, reversing a recent market trend that has punished commodities. A stronger dollar makes materials denominated in the U.S. currency more expensive for overseas buyers. The WSJ Dollar Index, which tracks the dollar against a basket of 16 other currencies and recently hit its highest level since May 2017, was down 0.1%.

Among precious metals, front-month gold for August delivery edged down 0.1% to $1,176.20 a troy ounce. The dollar’s strength and worries that higher Treasury yields will make the metal less attractive to some investors have sent prices to their lowest levels since January 2017.

Write to David Hodari at David.Hodari@dowjones.com and Amrith Ramkumar at amrith.ramkumar@wsj.com


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