Investing.com - Copper futures extended solid gains from the previous session on Wednesday, climbing to a one-week high as the U.S. dollar fell further amid optimism toward the European Central Bank’s first offer of three-year loans later in the day.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.411 a pound during European morning trade, rallying 1.25%.
It earlier rose by as much as 1.35% to trade at USD3.415 a pound, the highest since December 14.
Copper’s gains came as the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, declined 0.5% to trade at 79.82. It earlier fell to 79.77, the lowest since December 12.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Appetite for riskier assets strengthened ahead of the ECB’s operation, as investors hoped it will help the region’s lenders lower their funding costs and avoid a liquidity crunch in the euro zone.
Copper prices drew additional support after Chinese Premier Wen Jiabao pledged to provide capital support to small and medium-sized companies to boost economic growth in the world’s second largest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper futures rallied nearly 2.4% on Tuesday as better-than-expected U.S. housing data and easing concerns over the euro zone’s debt crisis renewed optimism over the global economic outlook.
The industrial metal is regarded as a leading indicator of the global economy because of its widespread uses across industries. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
Copper prices have lost nearly 25% since the start of 2011 as a deepening euro zone debt crisis and fears over a ‘hard landing’ in China pushed investors to liquidate assets such as industrial metals.
Elsewhere on the Comex, gold for February delivery rallied 1.25% to trade at USD1,637.95 a troy ounce, while silver for March delivery jumped 1.4% to trade at USD29.94 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.411 a pound during European morning trade, rallying 1.25%.
It earlier rose by as much as 1.35% to trade at USD3.415 a pound, the highest since December 14.
Copper’s gains came as the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, declined 0.5% to trade at 79.82. It earlier fell to 79.77, the lowest since December 12.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Appetite for riskier assets strengthened ahead of the ECB’s operation, as investors hoped it will help the region’s lenders lower their funding costs and avoid a liquidity crunch in the euro zone.
Copper prices drew additional support after Chinese Premier Wen Jiabao pledged to provide capital support to small and medium-sized companies to boost economic growth in the world’s second largest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper futures rallied nearly 2.4% on Tuesday as better-than-expected U.S. housing data and easing concerns over the euro zone’s debt crisis renewed optimism over the global economic outlook.
The industrial metal is regarded as a leading indicator of the global economy because of its widespread uses across industries. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
Copper prices have lost nearly 25% since the start of 2011 as a deepening euro zone debt crisis and fears over a ‘hard landing’ in China pushed investors to liquidate assets such as industrial metals.
Elsewhere on the Comex, gold for February delivery rallied 1.25% to trade at USD1,637.95 a troy ounce, while silver for March delivery jumped 1.4% to trade at USD29.94 a troy ounce.