Copper prices on Friday were on track for their biggest weekly rise since early June as investors calculated that a trade dispute between the United States and China could cause less damage than feared, according to Reuters.
Worries that trade barriers would reduce demand for commodities have pushed industrial metals sharply lower in recent months, with copper down 15 per cent from its June high.
But these concerns eased after tariffs announced this week were set at lower rates than had been expected and China, the world’s largest metals consumer, announced steps to boost its economy.
“There’s been quite a change in sentiment this week,” said Saxo Bank analyst Ole Hansen.
But the rally would have to move above Fibonacci technical resistance at $6,375 a tonne to cement itself, he added. “For now we can characterise it as a relatively small correction following a big downtrend.”