LONDON- Copper prices held in positive territory on Friday after China pledged more support for its ailing economy, though gains were capped by uncertainty surrounding the threat of US tariffs on the world’s biggest metal consumer.
Three-month copper on the London Metal Exchange (LME) gained 0.8 percent to $8,872 per metric ton, holding above the $8,757 five-month low touched on Tuesday.
US Comex copper futures climbed 1 percent to $4.05 a lb.
China will sharply increase funding from ultra-long treasury bonds in 2025 to spur business investment and consumer-boosting initiatives, a state planning official said on Friday.
“The Chinese news is keeping our head above water, but we’re facing an interesting year with the tariffs and the market trying to work out what kind of impact they may have on prices,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
US President-elect Donald Trump has said he will impose tariffs of 60 percent on Chinese imports.
The potential tariffs and disappointment about the level of stimulus Beijing has provided to boost flagging economic growth has weighed on copper prices, which have slid 13 percent since hitting a four-month peak of $10,158 on Sept. 30.
The dollar index eased on Friday, retreating from a two-year high on Thursday, but was poised for its strongest weekly performance in more than a month.
A weaker US currency makes it less expensive for holders of other currencies to buy dollar-priced commodities.
