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Global copper prices and other industrial metals continued to rally amid improving investor sentiment over possible progress in talks between the United States and Iran, while the Zambian Kwacha strengthened against the US dollar on the back of mining sector inflows.
According to market commentary issued by Access Bank Group, copper prices in London advanced after officials from both the US and Iran signaled progress in negotiations aimed at easing tensions between the two countries.
The bank noted that optimism surrounding a potential agreement helped improve broader market risk appetite, although uncertainty remains over Iran’s uranium stockpile and the strategic Strait of Hormuz shipping route.
Copper has already been trading near record highs amid growing concerns that global mine supply may struggle to meet rising demand driven by artificial intelligence infrastructure, clean energy investments and strategic stockpiling.
Read more: Copper prices slide as strong dollar puts pressure on markets
The commentary said copper pricing was now being influenced more by supply scarcity and security concerns than by production costs, suggesting prices may need to stay elevated to encourage new mining investment.
Other industrial metals also posted gains, with aluminum extending its upward trend, zinc rising strongly and iron ore recovering after a prolonged decline.
Meanwhile, in foreign exchange markets, the US dollar remained firm despite easing slightly after reaching a six-week high.
Access Bank said traders were closely monitoring the 99.488 Fibonacci retracement level on the US Dollar Index, which could signal further gains toward the key 100-point level if breached decisively.
The bank added that improving momentum indicators since mid-May point to continued underlying strength in the greenback.
On the domestic market, the Zambian Kwacha strengthened against the dollar, supported by favourable liquidity conditions and mining sector foreign currency inflows.
Bloomberg data showed the Kwacha’s gained 0.16 percent to close below the K18.90 per dollar mark.
Access Bank projected that the local currency could remain firm heading into the close of the week if current market conditions persist.
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