Copper hits two week UK highEmail Print Normal font Large font...

Copper hits two week UK high
Email Print Normal font Large font November 30, 2007 - 7:51AM

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AdvertisementLONDON METAL EXCHANGE

Copper hit a two-week high on Thursday as investors bought on growing speculation of rate cuts in the United States, which could help boost economic growth and demand for industrial metals.

Copper for delivery in three months on the London Metal Exchange ended up at $6,880 per tonne from $6,715 at the close on Wednesday.

Earlier on Thursday it touched $6,950 a tonne, the highest since November 19.

The US Federal Reserve's No 2 official on Wednesday signalled a willingness to cut interest rates further, saying renewed financial market turmoil could slow the US economy more abruptly than earlier thought.

Traders said third quarter gross domestic product data from the United States, showing the fastest growth in four years helped support prices in the afternoon session.

But rising stocks have weighed on metal prices.

Copper inventories at LME-registered warehouses stand at around 188,000 tonnes - having doubled since July.

Zinc rose as high as $2,560 per tonne and ended at $2,510/2,520 a tonne from $2,485 on Wednesday.

Nickel, a key ingredient of stainless steel, lost more than 4 per cent to end at $26,900 from $28,100.

Three-months lead slipped to $3,000 from $3,035, aluminium was at $2,505 from $2,510 and tin was steady at $16,800/16,850.

THE AGE