Metal prices soar in London
December 2, 2005 - 1:20PM
London Metal Exchange (LME) prices ended strongly on persistent fund buying in a market dominated by tight supply, dealers said.
Fundamentals are broadly supportive for copper, aluminium, lead and zinc, all of which hit new multi-year highs this week.
Copper ended the floor sessions at $US4,368 a tonne, against Wednesday's kerb close of $US4,246 but off an earlier record high of $US4,380.
Dealers said the market was gearing up for a run of tight nearby dates starting next week, with the December traded options declarations due on Wednesday.
China's State Reserves Bureau will hold a fourth auction for another 20,000 tonnes of copper on December 7 in an effort to drive down global prices.
The SRB sold 14,000 tonnes of 20,000 tonnes on offer at auction on Wednesday, when offer prices were higher than expected, which propelled copper prices higher.
The market's sharp gains also boosted other precious metals prices, pushing silver to an 18-year high and sparking buying in platinum and palladium as well.
Source: 2005 AAP
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