Cu hits new high amid strong metals trading

Friday, September 2, 2005

Copper's spot price reached a new all-time high on the London Metal Exchange (LME) Friday for the fourth time this week as part of a strong day's trading for base metals.

The red metal's spot price jumped 3% to US$1.793/lb, while three-month copper rose 2.6% to US$1.675/lb.

The rise came as copper stocks at LME-registered warehouses fell 2,425t to 67,950t.

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Aluminum's spot price also rose 1.4% to US$0.850/lb, nickel's spot price grew 3% to US$7.053/lb and zinc's spot price increased 2.1% to US$0.641/lb.

Barclays Capital warned that global growth and base metal demand would be hit if oil prices stay at US$70 a barrel level for a sustained period.

"However, given the strong underlying fundamentals for copper prices (low inventories and disappointing growth in output), we would expect only a severe slowdown in economic growth to negatively affect copper prices," Barclays said.

On the London Bullion Market gold's spot price rose 0.9% to US$443.60/oz while silver was up 2.4% to US$7.020/oz.