Copper Advances as Economic Growth in Europe Exceeds Estimates
Copper rose to a two-week high in New York after European economic growth topped analysts’ estimates, bolstering optimism that demand may rise. Tin headed for the biggest gain in almost four 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 10-currency basket that includes the euro, boosting the appeal of copper as an alternative investment.
“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 equally.”
Copper futures for delivery in March gained 0.4 percent to $3.264 a pound at 10:54 a.m. on the Comex in New York, after touching $3.27, the highest since Jan. 28. Prices are set for the first back-to-back weekly increase since since Dec. 13.
On the London Metal Exchange, copper for delivery in three months rose 0.7 percent to $7,158.50 a metric ton ($3.25 a pound).
Tin for delivery in three months rose 1.7 percent to $22,950 a ton on the LME. A close at that price would mark the biggest gain since Oct. 22. Prices exceeded the 100-day moving average, near $22,678.
Zinc, aluminum and lead also climbed in London.
“Technicals are driving markets,” Vicky Sanders, head of analytics sales at Marex Spectron Group in London, said by e-mail. “Tin shot through its 100-day moving average, while zinc broke through Monday’s high and is now testing the 61.8-percent retracement level,” one of the thresholds singled out in so-called Fibonacci analysis.
Fibonacci analysis is based on the theory that securities tend to rise or fall by specific percentages after reaching a high or low.
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