Investing.com - Copper prices rose to two-week highs Tuesday, supported by easing global trade-war worries in the wake of United States' bilateral deal with Mexico, while a weaker dollar also lifted sentiment.
Copper prices rose 0.77% to $2.75 a pound. The rise in copper marks a sharp turnaround following its plunge to an 18-month low less than two weeks ago amid concerns over the U.S.-China trade battles.
The uptick in copper has been supported by tightening supply as London Metal Exchange on-warrant copper inventories dropped to their lowest since September 2017, but net-bearish positions would likely keep a lid on gains, said Marex Spectron's Alastair Munro.
Gold prices, meanwhile, retreated from a two-week intraday high, struggling to take advantage of a weaker dollar as traders continued to ditch the greenback following the U.S.-Mexico trade deal.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell by $3.30, or 0.28%, to $1,212.60 troy ounce after trading as high as $1,220.70 intraday.
Fears a global trade war had kept demand for the greenback elevated on expectations that the strong U.S. economy would be less troubled from a trade war than that of its rivals.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.19% to 94.49.
Dollar-denominated assets such as gold are sensitive to moves in the dollar. A fall in the dollar makes gold cheaper for holders of foreign currency and raises demand.
The wider metals market traded mixed as concerns about the China-U.S. trade war offset gains from a weaker a dollar.
Zinc prices fell 0.19% at 2,528.00, giving up gains from a day earlier that followed data showing zinc stocks in China fell 11.8% last week to 30,800 tonnes, their lowest level since October 2007.
Aluminium prices rose 2.02% to 2,135.25, while nickel futures gained 1.53% to 13,635.00.
Silver futures fell 0.77% to $14.75 a troy ounce, while platinum futures lost 1.33% to $793.50.