By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Copper futures traded in record-high territory Tuesday, buoyed by expectations that a manufacturing expansion will put more pressure on already strained copper supplies, while gold futures were marginally higher, recouping at least some of the previous session’s losses.
Copper for March delivery (HGH11 450.20, +4.35, +0.98%) rose 5 cents, or 1.1%, to $4.505 a pound on the Comex division of the New York Mercantile Exchange. A close near this level would be copper’s highest ever.
“The global supply deficit on the copper market should widen significantly. Some market observers even see a deficit of (more than 800,000 metric tons) for the current year,” analysts at Commerzbank said in a note to clients Tuesday. “The price rally of metals, especially copper and tin, is therefore set to continue.”
Copper settled at $4.458 Monday, tying with Jan. 3 for a record settlement.
Gold futures were not shining as brightly. The metal for April delivery (GCJ11 1,337, +2.70, +0.20%) rose $3.90, or 0.3%, to $1,338.40 an ounce on Comex.
Investors are waiting to get a picture of U.S. manufacturing activity as the Institute of Supply Management is due to report its index early Tuesday.
But Monday’s Chicago purchasing managers index, which came in above expectations, fueled hopes that the broad ISM gauge will also show greater-than-anticipated expansion.
Other metals traded higher, with March silver (SIH11 2,830, +12.60, +0.45%) rising 2 cents, or 0.6%, to $28.34 an ounce.
