LONDON- Copper prices rebounded on Friday on hopes that US politicians will seal a deal to avert a federal debt default and as investors adjusted positions ahead of the weekend.
Three-month copper on the London Metal Exchange (LME) was up 1 percent at $8,254.50 a ton after sliding 1.6 percent in the previous session.
US Comex copper futures rose 1.1 percent to $3.73 a lb.
Wider financial markets marched higher after Democratic negotiators told President Joe Biden on Friday that they are making “steady progress” in talks with Republicans in an effort to avoid a US default.
Later on Friday, a Republican said talks had been paused, while the White House said a deal remained possible.
“We’ve seen this so many times; both sides of the aisle show some brinkmanship, but then come together for a deal,” said Nitesh Shah, a commodity strategist at WisdomTree.
“A lot of cyclical assets are moving one day up, one day down, dependent on what’s going on with the debt situation. Markets are nervous, there’s a high risk of an accident.”
A slightly weaker dollar index also supported the market, making commodities priced in the US currency cheaper for buyers using other currencies. – Reuters
