Copper prices rose mildly on Thursday as the dollar weakened, but concerns about demand and trade remained an obstacle. 

Copper three-month futures rose 0.5% at the London Exchange to $9694 a ton as of 14:00 GMT after hitting November 2023 at $8105. 

The dollar index fell to three-year lows after US inflation data, making the greenback-denominated metals cheaper to holders of other currencies. 

US President Trump said he’s willing to extend the final July 8 deadline to carry on trade talks, but warned that the US will send messages in the next few weeks to tens of countries to set trade terms. 

UBS noted that from the demand perspective, manufacturing PMIs from China, the US, and Europe remain in a contraction zone, with ongoing impact from tariffs, which would weaken demand on copper.

Last February, the US launched an investigation into copper imports and opened the way for a potential tariff similar to duties on steel and aluminum.

From the supply side, operations into a major copper mine in the Congo Democratic Republic resumed after an earthquake caused disruption.

Aluminum and tin prices were little changed at  the London Metals Exchange at $2516 and $32,600 a ton respectively, while zinc shed 0.6% to $2638, as nickel lost 0.2% to $15,150, while lead rose 0.5% to $1996.

Copper futures due in July rose 0.1% in American trade as of 15:14 GMT to $4.81 a pound.

Bitcoin dropped on Thursday below $108,000 amid mounting tensions in the Middle East, but corporations continued to build up their bitcoin holdings.

Risk Appetite Suffers

Bitcoin dipped on Wednesday and closed below $109,000 and extended the losses on Thursday, after reports that Israel is preparing for a military operation against Iran.

Such geopolitical tensions pushed investors toward safe havens, in turn underpinning bitcoin, which has become a favored alternative investment in recent weeks. 

Russia escalated its attacks on Ukrainian targets, describing it as retaliation against recent Ukrainian attacks, with Russian drones targeting major Ukrainian cities in intensive strikes. 

Trump said he is sending messages to the US trade partners, specifying the new tariffs in the next few weeks as the 90-day pause approaches an end. 

As for Iran, Trump threatened once more that Iran can not acquire nuclear weapons. 

Corporate Purchases 

Despite the tensions, corporations continued to support bitcoin, with Mercurity Fintech Holding announcing plans to purchase $800 million worth of bitcoin as long-term strategic reserves. 

Gamestop similarly announced plans to gather $1.75 billion of investment to purchase bitcoins in upcoming weeks. 

Analysts are mixed on the outlook of bitcoin, with some expecting a sharp correction towards $95,000, while others believe bulls remain in control with the price heading towards the $140,000-$150,000 range.

Technical Signals Hint at $140,000

Analysts are mixed on the outlook of bitcoin, with some expecting a sharp correction towards $95,000, while others believe bulls remain in control with the price heading towards the $140,000-$150,000 range.

Multiple technical signals and indicators likely pave the way towards a solid breach of the $112,000 recent record high, with a solid target at $143,000, representing a 35% profit. 

Recent trade threats by US President Trump sent the dollar to a three-year nadir on Thursday amid increasing investor concerns, with Trump saying he is sending messages to the US trade partners, specifying the new tariffs in the next few weeks as the 90-day pause approaches an end. 

The dollar lost 0.8% against a basket of major rivals, falling below the level it reached after the Liberation Day wave of losses in early April.

As for Iran, Trump threatened once more that Iran can not acquire nuclear weapons. 

Despite the ongoing tensions, stocks recovered from their steep April losses, with the S&P 500 approaching a new record high, but the Stoxx Europe 600 index tumbled 0.9% on Thursday. 

Recent US inflation data, which missed expectations, heaped pressure on the dollar and opened the door for a Fed rate cut in September. 

The dollar lost 10% of its total value this year amid increasing economic concerns due to the trade war and US government deficits. 

The recently released US consumer prices report showed a muted impact of tariffs on inflation so far in May, but economists still expect a rise in upcoming months.

On Wednesday, the US administration decided to withdraw some personnel from the Middle East amid increasing security threats, sending oil prices up 4% temporarily. 

Iran on the other hand asserted it won’t give up its right to enrich uranium and threatened military actions against US military bases.

Gold prices rose in European trade on Thursday on track for the second daily profit in a row as the dollar fell against major rivals. 

The development came after US inflation missed estimates in May, reducing inflationary pressures on the Fed’s policymakers and bolstering the odds of a September rate cut.

The Price

Gold prices rose 0.75% to $3377 an ounce, with a session-low at $3338.

On Wednesday, gold rose 0.95%, the second profit in three days after weak US consumer prices data.

US Dollar

The dollar index fell 0.35% on Thursday, on track for the second loss in a row, plumbing a two-month trough at 98.25 against a basket of major rivals.

A weaker dollar makes the greenback-denominated gold futures cheaper to holders of other currencies.

The US and China reached a trade framework in London after two days of intensive negotiations, with representatives waiting for the final approval of Trump and Xi Jinping to move forward.  

Trump said China will supply rare-earth minerals and magnets to the US, and will get chip exports from America, with restrictions on Chinese students in US universities will be lifted as well.

US Rates

Recent data showed US inflation rose less than expected in May, with limited effects so far for Trump’s tariffs on prices.

Following the data, traders raised their estimates for a Federal Reserve rate cut in September.

Now traders await  US producer prices data later today to gather even more clues. 

SPDR

Gold holdings at the SPDR Gold Trust fell 1.72 tons yesterday to a total of 934.19 tons, the lowest since June 2.