Copper rises substantially higher

Prices rise on speculation investors were buying the metal

Copper prices at Comex followed other commodities and ended substantially higher on Tuesday, 27 September 2011. Copper rebounded in New York on speculation investors were buying the metal, used in tubing and wiring, to close out bets on lower prices. Prices also rose following the improved sentiment that came amid reports that officials in Europe are planning to shore up the region's fiscal and financial problems. A weak dollar also pushed up metal prices.



Copper for December delivery ended higher by 14.45 cents (4.5%) to $3.4275 a pound at Comex on Tuesday. Copper ended the month of August lower by 6.3%.

Red metal prices for three-month-delivery at LME rose $530 (5.1%) to $7,565 a metric ton on Tuesday.

US stocks extended gains for second third day on Tuesday after German Chancellor Angela Merkel expressed support for Greece on optimism that European leaders will reach an agreement to contain the region's debt crisis.

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, was trading lower by 0.5%.

Among economic data expected for the day, the Conference Board said its survey of consumer confidence last month showed a slight improvement, rising to a reading of 45.4 from 45.2 in August, but missing economists' forecasts for a rebound to 46.1.

Among other traded metals at LME on Tuesday, lead in London rose 4.3% to $1,958 a ton and nickel rose 4.2% to $18,750 a ton. Aluminum closed 1.2% higher at $2,230.25 a ton, and zinc closed higher by 2.7% at $1,931 a ton.

At the MCX, copper prices for November delivery ended higher by Rs 9.7 (2.6%) at Rs 375.8/Kg. Prices rose to a high of Rs 380.25/Kg and fell to a low of Rs 364.6/Kg.