LONDON: Copper prices hit their highest in more than five months on Friday, fuelled by investor expectations of U.S. interest rate cuts and concern over possible supply shortages.
Three-month copper on the London Metal Exchange gained 0.5% to $10,097 per metric ton by 1005 GMT for its highest since March 26.
Copper has climbed by about 15% this year but has failed several times to make much headway above the psychological $10,000 level.
Base metals joined other markets that rallied after U.S. data on Thursday that showed a surge in jobless claims, reinforcing views that the Federal Reserve will cut interest rates.
“I think the consensus was a quarter-point cut, but now I think it may be more. So I think that’s given the markets a lift and the bullish sentiment helped copper,” said Robert Montefusco at broker Sucden Financial.
“CTAs were buying dips under $10,000, pushing it higher. That got us going and then the Chinese came to the party overnight.”
Commodity Trade Advisor (CTA) investment funds are largely driven by computer programs based on technical signals.
Copper claws above $10,000 on weaker dollar after US data
The most traded copper contract on the Shanghai Futures Exchange gained 1.22% to 81,060 yuan ($11,384.67) a ton.
Also supporting prices were worries about supply.
Mining operations at the massive Grasberg copper mine in Indonesia, one of the world’s biggest, remained suspended on Friday as a search continued for workers trapped after parts of the mine became blocked.
Copper output in Peru, the world’s third-largest copper producer, fell 2% year on year to 228,007 metric tons in July.
Nickel was the top gainer on the LME, climbing 1.3% to $15,350 a ton after a task force in top producer Indonesia seized large plots from nickel miners in a crackdown on illegal exploitation of natural resources.
Among other metals, LME aluminium rose 0.8% to $2,695 a ton, zinc advanced 0.9% to $2,926, lead was up 0.4% at $2,005 and tin added 0.3% to $34,815.
LONDON: Copper prices hit their highest in more than five months on Friday, fuelled by investor expectations of U.S. interest rate cuts and concern over possible supply shortages.
Three-month copper on the London Metal Exchange gained 0.5% to $10,097 per metric ton by 1005 GMT for its highest since March 26.
Copper has climbed by about 15% this year but has failed several times to make much headway above the psychological $10,000 level.
Base metals joined other markets that rallied after U.S. data on Thursday that showed a surge in jobless claims, reinforcing views that the Federal Reserve will cut interest rates.
“I think the consensus was a quarter-point cut, but now I think it may be more. So I think that’s given the markets a lift and the bullish sentiment helped copper,” said Robert Montefusco at broker Sucden Financial.
“CTAs were buying dips under $10,000, pushing it higher. That got us going and then the Chinese came to the party overnight.”
Commodity Trade Advisor (CTA) investment funds are largely driven by computer programs based on technical signals.
Copper claws above $10,000 on weaker dollar after US data
The most traded copper contract on the Shanghai Futures Exchange gained 1.22% to 81,060 yuan ($11,384.67) a ton.
Also supporting prices were worries about supply.
Mining operations at the massive Grasberg copper mine in Indonesia, one of the world’s biggest, remained suspended on Friday as a search continued for workers trapped after parts of the mine became blocked.
Copper output in Peru, the world’s third-largest copper producer, fell 2% year on year to 228,007 metric tons in July.
Nickel was the top gainer on the LME, climbing 1.3% to $15,350 a ton after a task force in top producer Indonesia seized large plots from nickel miners in a crackdown on illegal exploitation of natural resources.
Among other metals, LME aluminium rose 0.8% to $2,695 a ton, zinc advanced 0.9% to $2,926, lead was up 0.4% at $2,005 and tin added 0.3% to $34,815.
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