Investing.com -- There’s a mixed trend in base metal prices, with the London Metal Exchange (LME) three-month copper seeing a 0.5% increase to $9,415 per metric ton. On the other hand, LME three-month aluminum experienced a slight drop of 0.2%, settling at $2,437.50 per ton.
This performance follows a positive session on Wednesday, where both copper and aluminum experienced gains of 2.9% and 1.9% for the week, respectively. This upward trend is driven by growing optimism for a potential easing in U.S.-China trade tensions.
President Trump’s recent suggestions of significant tariff reductions and his declaration of not intending to dismiss Federal Reserve Chair Jerome Powell have ignited a more risk-accepting attitude in financial markets. This information comes from a note released by ING analysts.
Speculators on the LME have nearly tripled their net long positions in copper, pushing it to 98,765 contracts. This level of bullishness is the highest on record since January 2018, according to ING.
In addition to the market optimism, supply concerns are also influencing the metals market. Peru’s Antamina copper-zinc mine, a significant source of copper, has been temporarily shut down due to safety concerns, further increasing the upward pressure on copper prices.
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