Copper price jumped on Tuesday after weak US manufacturing data eased concerns that the Federal Reserve will tighten monetary policy too rapidly.
The Institute for Supply Management’s gauge of US factory activity dropped to the lowest in more than two years in September, causing the dollar to retreat.
Jobs data due later this week should provide more clues on the Federal Reserve’s rate-hike trajectory, with more robust employment gains likely to firm its hawkish stance.
Copper for delivery in December rose 2.3% from Monday’s settlement price, touching $3.49 per pound ($7,678 per tonne).
[Click here for an interactive chart of copper prices]
In China, there’s speculation Beijing may soon start relaxing its strict covid-19 restrictions.
While it’s unlikely that a complete reversal of the Covid Zero policy will take place at the National Congress on Oct. 16, a gradual easing is on the cards, Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, said in a note.
(With files from Bloomberg)