Copper futures rose to a two-week high as Europe’s economic growth topped estimates by analysts, bolstering prospects for increasing metal demand. Tin posted the biggest gain in more than three months.
Gross domestic product in the euro zone expanded 0.3 percent last quarter, European Union data showed today, more than the 0.2 percent median forecast of analysts surveyed by Bloomberg. The dollar fell to the lowest this year against a basket of 10 currencies, boosting the investment appeal of of commodities.
“Any time you have GDP numbers or growth numbers that beat expectations, there’s going to be an underlying assumption that demand for all raw commodities will be better,” Tim Evans, the chief market strategist at Long Leaf Trading Group in Chicago, said in a telephone interview. “That would apply to copper.”
Copper futures for March delivery gained 0.4 percent to settle at $3.2645 a pound at 1:21 p.m. on the Comex in New York. Earlier, the price reached $3.27, the highest for a most-active contract since Jan. 28.
On the London Metal Exchange, copper for delivery in three months rose 0.6 percent to $7,150 a metric ton ($3.24 a pound). Zinc, aluminum and lead climbed.
Tin rose 1.8 percent to $22,975 a ton, the biggest gain since Oct. 22. The settlement topped the 100-day moving average.
“Technicals are driving markets,” Vicky Sanders, head of analytics sales at Marex Spectron Group in London, said in an e-mail.