THE prices of Copper and other commodities gained across the board yesterday after Europe made progress in its plan to contain the region's debt crisis and an index showed China's manufacturing sector expanded this month.
The Copper prices rose yesterday gaining for a second straight session, as European leaders moved closer to resolving the region's debt crisis, while data from top consumer China also supported sentiment. European Union leaders made some progress towards a strategy to fight the euro zone's sovereign debt crisis on Sunday, but the final decision was deferred until a second summit tomorrow.
Reuters reports that the prices for base metals rose across the board, with the most-active January copper contract on the Shanghai Futures Exchange rising 5.1 per cent to a high of 54,280 Yuan ($8,502.51) a tonne shortly before its midday close.
Three-month copper on the London Metal Exchange (LME) rose 2.9 per cent to $7,350 a tonne after rallying more than six per cent on Friday, its largest one-day advance since early 2010. China's vast manufacturing sector picked up moderately in October, snapping a three-month contraction and underscoring the resilience of the world's second-largest economy backed by robust domestic demand. Technicals indicate LME copper faces a resistance at $7,343 and a break above this level will open the way to$7,734 per tonne, while Shanghai copper will drop to a low of 50,760 yuan per tonne.
International Copper Study Group (ICSG) said world refined copper market saw a deficit of 118,000 tonnes in the January to July period this year compared with a deficit of 329,000 tonnes in the same period last year. Gold prices rose one per cent, after European leaders inched closer to a concrete plan to solve the region's debt crisis during a weekend meeting, and upbeat manufacturing data from China fed the positive mood across markets.
In recent weeks gold prices have followed moves in riskier assets, with the precious metal's safe-haven appeal diminishing after wild price swings in the past quarter. Spot gold rallied 1 percent to $1,657.6 an ounce and eased to $1,653.99 by 0641 GMT, after posting its biggest weekly fall last week with a drop of more than two per cent. US gold GCcv1 rose as much as 1.4 percent to $1,658.6 before easing to $1,655.20. But technical analysis suggested spot gold could fall to $1,602.74 during the day.
China's vast manufacturing sector picked up moderately in October, snapping a three-month contraction and underscoring the resilience of the world's second-largest economy backed by robust domestic demand. Brent crude was up by $1.14 at $110.70 a barrel. Prices have jumped by about 16 per cent so far this year, and are headed for a third straight year of gains. US crude rose by $1.14 to $88.54 a barrel.
