Copper prices hit weekly highs on Thursday as the top consumer China showed signs of re-stocking and traders sought to close short positions on hopes that there would be more monetary policy easing after weak economic data in Europe.
Three-month copper on the London Metal Exchange hit a session high of US$7,197 a tonne and closed at $7,180 on Thursday.
Copper prices had rebounded 2.3% on Wednesday after sinking to 18-month low of $6,762 a tonne on Tuesday.
Traders also sought to close short positions ahead of three days holidays in China next week. Open interest in the most active Shanghai Futures Exchange copper contract had reached record high near 420,000 lots earlier this week, when prices hit the lowest in almost three years.
But with prices rebounding on Wednesday, open interest fell 14% signaling short covering.
Meanwhile, copper on Comex division of Nymex also settled higher on Thursday, with the most actively traded contract for May delivery settling 8 cents higher at $3.237 a pound.
This was the highest settlement since April 16 and reflects rebound in prices since the 18-month lows set on April 23.
Copper prices got a boost after better than expected economic data coming from the US Labour Department, which saw jobless claims falling to 339,000 last week.
Economists had forecast jobless claims to rise.
The data boosted sentiment in the market with traders closing out their bets on lower copper prices.
Prices also got a boost on weaker greenback, which retreated against a basket of international currencies.
Dollar-denominated commodities become cheaper for investors who use other currencies when dollar is weaker.
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Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China. * Reported by Proactive Investors 2 hours ago.
Three-month copper on the London Metal Exchange hit a session high of US$7,197 a tonne and closed at $7,180 on Thursday.
Copper prices had rebounded 2.3% on Wednesday after sinking to 18-month low of $6,762 a tonne on Tuesday.
Traders also sought to close short positions ahead of three days holidays in China next week. Open interest in the most active Shanghai Futures Exchange copper contract had reached record high near 420,000 lots earlier this week, when prices hit the lowest in almost three years.
But with prices rebounding on Wednesday, open interest fell 14% signaling short covering.
Meanwhile, copper on Comex division of Nymex also settled higher on Thursday, with the most actively traded contract for May delivery settling 8 cents higher at $3.237 a pound.
This was the highest settlement since April 16 and reflects rebound in prices since the 18-month lows set on April 23.
Copper prices got a boost after better than expected economic data coming from the US Labour Department, which saw jobless claims falling to 339,000 last week.
Economists had forecast jobless claims to rise.
The data boosted sentiment in the market with traders closing out their bets on lower copper prices.
Prices also got a boost on weaker greenback, which retreated against a basket of international currencies.
Dollar-denominated commodities become cheaper for investors who use other currencies when dollar is weaker.
*
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China. * Reported by Proactive Investors 2 hours ago.