Investing.com – Copper prices edged higher as a weaker greenback helped alleviate selling pressure brought on by expectations the U.S. is set to pull the trigger on a fresh round of tariffs against China.
Copper prices gained 0.26% to $2.65, zinc prices rose 0.69% to 2,325.75 and Nickel fell 1.09% to 12,277.50
U.S. President Donald Trump was expected to announce new 10% tariffs on $200 billion in Chinese goods as soon as Monday. Some took solace in the fact that the tariffs were less harsh than originally proposed.
The new 10% tariffs are below an original figure of 25% floated by the administration earlier, The Wall Street Journal reported. The fresh round of levies comes just a week ahead of new trade talks between the U.S. and China.
Still, the prospect of further tariffs on China, the world's largest commodity consumer, has fueled fears that demand could falter, as the U.S-China trade war has exacerbated China's economic woes.
Citigroup (NYSE:C) forecast another tariff by the U.S. on $200 billion of Chinese goods would "knock a full 1% off Chinese real GDP growth."
A weaker dollar, however, helped stifle downside momentum in metal prices.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.47% to 94.06.
Dollar-denominated assets are sensitive to moves in the dollar. A fall in the dollar makes commodities cheaper for holders of foreign currency, boosting demand.
Alumiium prices fell 0.06% to 2,0355.50, but losses were limited by easing fears of a supply shortage after the Treasury Department said it would allow customers of Russian producer Rusal to negotiate some new contracts.
In precious metals, gains in gold prices were limited by an ongoing rise in U.S. bond yields as the U.S. 10-year Treasury yield hovered around the psychologically important 3% level.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose by $4.80, or 0.40%, to $1,205.40 troy ounce.
A rise in U.S. rates lifts the opportunity cost of holding gold as it pays no interest.
Silver futures rose 0.55% to $14.22 a troy ounce, while platinum futures rose 0.28% to $800.80.