Shanghai copper prices hit a two-week high on Thursday, aided by a weaker US dollar, which fell to its lowest level in over three years, and relief from the Israel-Iran ceasefire deal.
The most-traded copper contract on the Shanghai Futures Exchange was up 0.6 percent at 79,000 yuan ($11,032.75) per metric ton, its highest since June 11.
Three-month copper on the London Metal Exchange also added 0.7 percent to $9,777 a ton.
The dollar fell 0.4 percent to its lowest since March 2022 as concerns after a Wall Street Journal report said President Donald Trump has considered selecting and announcing Federal Reserve Chair Jerome Powell’s replacement by September or October, raising concerns about the soundness of US monetary policy.
A weaker dollar makes greenback-denominated assets more affordable to holders of other currencies.
On the geopolitical front, the “ceasefire between Iran and Israel has a positive feedback on copper prices,” said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA.
Trump said on Wednesday he would likely seek a commitment from Iran to end its nuclear ambitions at talks next week and credited US strikes on Iran with bringing a swift end to the war between Israel and Tehran.
