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Copper prices on Friday posted their biggest weekly drop in a year after US President Donald Trump announced that the United States would impose more tariffs on Chinese imports as part of a a trade war that would slow economic growth and demand for minerals.
Trump's announcement caused turmoil in global markets and led to a sharp decline in bond yields, oil prices and industrial metals, with zinc falling to its lowest level in 11 months.
This decision also pushed the dollar to a two-year high before the release of US employment data, while the decline of the Chinese yuan made metals more expensive for Chinese buyers, the bigger ones customers in the metals sector.
Standard copper ended the trading session of the London Metal Exchange, down 2.9% to 5729.50 dollars per ton, after falling to its lowest level since January at 5725 dollars.
Copper losses this week were about 4%, the biggest weekly decline since last August.
The trade war between the United States and China and the slowdown in Chinese industrial activity and the rest of the industrial metals sectors were hit hard, with copper falling by about 20% from the record reached in June of last year.
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