(May 26): Copper held a gain as investors monitored progress toward a possible deal to end three months of war in the Middle East.
The industrial metal was little changed near US$13,680 a tonne on the London Metal Exchange, having risen more than 1% on Friday. The LME was closed Monday for a public holiday.
US President Donald Trump said negotiations with Iran over an interim deal to extend a ceasefire and reopen the Strait of Hormuz were “proceeding nicely" while Pakistani military chief Asim Munir — the main interlocutor between the warring sides — told China an agreement was “close to being reached".
Optimism that a deal could be near was curbed, however, after US Central Command said American forces had struck missile-launch sites in Iran and vessels that it said were trying to place mines. The attack took place south of Larak Island and several Iranian personnel were killed, Iran’s state-run Nour News reported, without providing further details.
Copper has risen to near-record highs this month, supported by hopes for a peace deal that would ease inflation concerns as well as a flurry of bets on skyrocketing power use for artificial intelligence. Among its many uses, the metal is a crucial component in the data centres that power AI projects.
Copper edged up 0.1% to US$13,680 a tonne on the LME as of 11.07am in Shanghai. Other metals were mixed, with aluminium down 0.2% at US$3,644 a tonne and nickel falling 1.3%. Zinc gained 0.7% to US$3,567 a tonne.
See also: Indonesia eyes commodity export policy detail roll-out in coming weeks
Uploaded by Arion Yeow
