BLBG: Copper May Advance as the Dollar Weakens, Economies Rebound
Oct. 9 (Bloomberg) -- Copper may gain as a weaker dollar spurs demand for commodities as an alternative investment and an economic rebound bolsters consumption, a survey showed.
Ten of 20 analysts, investors and traders surveyed by Bloomberg, or 50 percent, said the metal would rise next week. Nine predicted lower prices and one expected them to be steady. The Dollar Index, a gauge against six other currencies, dropped 15 percent since March, making commodities priced in dollars cheaper for those holding other currencies.
“It is likely that the U.S. dollar will continue to weaken and equity markets will make gains, lending a bid tone to the copper market,” said David Thurtell, an analyst at Citigroup Inc. in London.
The weekly copper survey has forecast prices accurately in 30 of the past 58 weeks, or 52 percent of the time.
This week’s survey results: Bullish: 10 Bearish: 9 Hold: 1
To contact the reporter on this story: Anna Stablum in London at astablum@bloomberg.net
