Copper
2010-02-07,Weekly summary 1-5.02.2010
Copper gained to $6800 per ton at LME generally on better U.S manufacturing data which gained at the quickest pace since August 2004 indicating a higher base metals consumption in the future. ISM index reached 58.4 in January from 54.9 a month earlier. Such figures appear as quite robust moreover a manufacturing index also rose in Europe to 52,4 from 51,6 adequately indicating that situation is getting better globally. On the other hand U.S dollar eased it's rally from 1.3860 to 1.3920 what naturally made commodities as more profitable ones.
Copper was up to $6810 per ton especially when weaker dollar spurred investors to commodities purchasing. U.S Dollar Index retreated by 0.3% what is more this base metal prices also gained thanks to optimistic data from U.S building market. There was growth in previously owned houses purchasing by 1% in December what should be quite positive for copper bulls.
Copper dropped to $6560 per ton in London generally on total green currency rally which vanished appeal of base metals as alternative investments. Dollar gained to 1.3890 against euro but only 0.1% against major six world currencies. Moreover some market specialists say that copper is entering longer downward rally especially when current prices are too much higher than fundamentals reflect.
Copper fell to $6350 per ton thanks to U.S currency strength when dollar rose to $1.3700 against euro thwarting appeal of base metals as alternatives. Copper quotations are overpriced while it doubled last but this base metal stockpiles also gained in this period. Moreover the darkest prognosis say about $2200 as a current fair value especially when 90% of buying was clearly speculative.
Copper was down to $6290 per ton according to LME settlement with a mid session minimum a little below $6200 setting the same a 3 month low as U.S Labor Department revealed quite mixed data about unemployment (-20000 payrolls in January with 9,7% unemployment rate). According to the latest market forecast , copper may fall to $5500 per ton in few next weeks.
Some tech. Levels:
Res.: $6600 - $6900 - $7100
Sup.: $5800 - $5500 - $5200
>> View all