Reuters reports copper rose to its highest in nearly a week on Thursday to close at $7,225/tonne on the LME up from Wednesday’s close of $6,820 as US data hinted at an improvement in the labour market and European policymakers’ comments on dealing with Greece’s debt crisis calmed nerves.
Copper’s strong gains comes at a time when some 5,000 merchants are gathering in the British capital for London Metal Exchange week, an annual event during which supply contracts are discussed. On Monday the red metal fell to 14-month low.
Earlier on Thursday the metal rose 6% to $7,230.25, its highest level since Sept. 30, although volumes were low. Monday’s 14-month low was $6,636 a tonne.
Reuters quotes Christin Tuxen, an analyst at Danske Bank: “We have seen … an improvement in risk appetite, which is driving the market.”
Monday’s moves are in stark contrast to last week when the red metal suffered its biggest rout since the recession and analysts cut their forecasts across the board:
The metal may drop as much as 10 percent to $6,500 a metric ton by Dec. 31, according to the median in a Bloomberg survey of 16 analysts and traders released on Monday.
The estimate had been $7,773 only a week before. Barclays Capital has cut its forecast for the shortfall in global supplies five times since April and Deutsche Bank AG is anticipating a surplus as early as next year.
MINING.com reported on Tuesday on the day it cleared and matched its first gold trade the London Metal Exchange which handles some 80% of global trade in metals futures, told members that it has receive “many” expressions of interest from potential bidders.
