Red metal strengthens on Friday

Prices falter on a weekly basis

Red metal prices ended higher on Friday, 16 December 2011 at Comex. Copper rose on Friday, due to a retreating dollar and firm U.S. economic data, but gains look vulnerable going into next week with Europe's debt crisis and its impact on metals demand still causing concern. A steadier tone in wider markets, and a halt in the slide of the euro against the dollar was lending metals some support on Friday. A softer dollar makes commodities less expensive for holders of other currencies.



Copper for March delivery ended higher by 6 cents (2%) at $3.33 a pound at Comex on Friday. For the week, copper lost 5.9%. Copper ended the month of November lower by 1.9%.

Red metal prices for three-month-delivery at LME rose $134 (1.8%) to $7,354 a metric ton on Friday.

In the currency market on Friday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies scaled back some of its gains after a better-than-expected result for a Spanish debt auction, and better-than-expected U.S. jobless claims data on Thursday. The dollar index climbed 0.03% later during the day after stocks dropped. The dollar rose to 11 month high mainly against the euro earlier during the week.

The stock market bid higher in the early going on Friday, but for the second straight session its failure to overcome resistance resulted in selling that left the major averages to finish the week in relatively mixed fashion. Stocks benefited earlier from strong buying on above-average volume, which was inflated by quadruple witching options expiration.

But Dow pared all its gains after Fitch Ratings affirmed France's top Triple-A credit rating, but warned of a potential down grade for six other euro-using nations, placing Belgium, Spain, Slovenia, Italy, Ireland and Cyprus under review, calling a broad solution to Europe's debt crisis “technically and politically beyond reach.”

Among economic data for the day, the Labor Department said on Friday that the consumer price index was flat last month on a seasonally adjusted basis, matching the forecast. Core prices that don't take food and energy into account climbed 0.2%.

Industrial metals have fallen this year as Europe's problems stunt economic growth, sap banks' lending for commodity trading and threaten to dampen demand for goods exported by emerging nations.

Among other traded metals at LME on Friday, lead in London fell 0.8% to $1,960 a ton and nickel closed higher by 3.7% at $18,550 a ton. Aluminum closed higher by 1.4% at $2,003.5 a ton, and zinc closed higher by 1.3% at $1,868 a ton.