Copper prices advanced as investors awaited critical discussions between Iran and the United States scheduled for Saturday, assessing whether the fragile ceasefire between the two nations can hold.
Trading in copper on the London Metal Exchange (LME) was volatile, with prices climbing as much as 1.9% during the session to reach $12,928 per ton, the highest level since March 17, before settling 1.3% higher. This marked the third consecutive week of gains for copper.
Metal prices have recovered since Tehran and Washington agreed to a two-week ceasefire on Tuesday, as the truce raised hopes that global demand could avoid further damage from surging energy prices. Despite this, U.S. President Donald Trump has continued to issue threats against Iran, and the outcome of the talks is expected to set the tone for market movements in the coming week.
Jefferies Financial Group Inc. noted in a research report that if the situation continues to ease, copper should perform well. The report stated, "The outcome is largely binary, with risks now skewed to the upside again."
Other industrial metals on the LME also saw broad gains, with the exception of lead.
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