6 August 2012

Zambia: Copper Prices Soar

THE copper prices on the international market leapt by the most in three weeks on Friday after data showing the United States (US) employers hired more workers than expected last month.

Reuters reports that the news about the US employers deflated the dollar and boosted prices of the red metal away from the bottom end of well-worn range.

The prices of copper rose to three per cent rally in crude oil.

London Metal Exchange (LME) three-month copper rose by US$115, (K575,000) or 1.6 per cent, to end at $7,445 (K37,225,000) a tonne, its biggest one-day gain since July 13, when prices soared by nearly two per cent.

In New York, the COMEX September contract rose by 7.70 cents, or 2.3per cent, to settle at $3.3675 (K168,375,000) after dealing between $3.2985 (K37,985,000) and $3.3740 (K168,700,000)

Since May, copper prices have been mired in a range between $7,200 (K36,000,000) and $7,800 (K39,000,000) in London and $3.25 (K16,250) and $3.60 (K1,800,000) in New York, pushed and pulled between a waning global growth outlook and a tighter supply base and second-half Chinese demand prospects.

Reflecting a lack of conviction about copper's short-term price direction, the open interest in the LME copper contract hovered around near-five-year lows hit last week.

For gold the prices rose by about one per cent as the dollar slid and equities rallied.

Despite the daily gain, gold posted its biggest weekly drop in six weeks.

Spot gold was up by 0.9 per cent at $1,603.30 (K801,650,000) an ounce while US COMEX gold futures for December delivery settled up by $18.60 (K93,000) at $1,609.30 (K8,046,500).

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