Surging Metals, Weakening Dollar After Trump's Tariff Delay
Copper and zinc rallied after President Trump suspended tariffs on Canada and Mexico for a month, leading to a decline in the US dollar.
Trump announced the delay of 25% levies after the two neighboring countries agreed to strengthen border controls, temporarily averting a continental trade conflict. The ensuing drop in the US currency made commodities more appealing.
Base metals have faced volatility in 2023 due to trade tensions and concerns over demand in China. Trump has also threatened tariffs on the Asian economic powerhouse, with a deadline looming. However, the administration is scheduled to engage in talks with Beijing, potentially offering respite.
Copper rose 0.7% to $9,159 per ton on the London Metal Exchange as of 11:37 am Singapore time. Zinc gained 0.8% and aluminum 0.3%. Iron ore climbed 0.8% to $105.15 in Singapore.
Chinese markets remain closed for the Lunar New Year holiday and are expected to resume operations on Wednesday.