copper rises as u s new home sales climb more than

Copper Rises as U S New Home Sales Climb More Than Forecast

By Halia Pavliva

Dec. 27 (Bloomberg) -- Copper prices rose for the second- straight day in New York after sales of new homes in the U.S. rose more than forecast in November, signaling demand for the metal may rebound.

The price of copper has gained 43 percent this year. The 3.4 percent increase in new-home sales topped a 1.6 percent gain forecast by economists. The number of unsold homes still remained close to a record. Builders are the biggest users of copper. The average U.S. home contains about 400 pounds of the metal.

``New-home sales definitely does help,'' even though ``the reaction was a little delayed,'' said Win Chung, a trader at Triland USA Inc. in New York. Prices may trade from $2.87 to $2.95 a pound through next week, marking ``a healthy consolidation period,'' he said.

Copper futures for March delivery rose 3.6 cents, or 1.3 percent, to $2.914 a pound on the Comex division of the New York Mercantile Exchange. The metal climbed 0.8 percent yesterday. Prices still have dropped 28 percent from $4.04, the highest ever, in May.

A futures contract is an obligation to buy or sell a commodity at fixed price for delivery by a specific date.

On the London Metal Exchange, copper for delivery in three months gained $55, or 0.9 percent, to $6,380 a metric ton.