Copper today hit a high of $6,063.50, a level it last traded at on 21st May as markets reacted to news that the US-China trade deal was 90% complete, which raised expectations that the two countries would come to an agreement in the near future.
Steven Mnuchin, the US treasury secretary uttered the comments earlier today driving copper to the five-week highs as investors anticipated higher demand for the metal, which is widely used in the construction and power generation industries.
Kash Kamal, an analyst at BMO Capital Markets explained that: “There is a lot of volatility, copper is being led by the macro environment, the US-China trade war, and its potential impact.”
“Macro headwinds are very real, the environment is very uncertain and investors are watching key indicators of demand such as industrial production in China.”
It remains to be seen whether the two countries will soon seal a deal given that President Trump and his Chinese counterpart Xi Jinping are set to meet at the G20 summit on Saturday.