SAN FRANCISCO (MarketWatch) — Copper futures rose to another record Monday on ongoing concerns about tight supplies for the industrial metal, while gold traded mildly higher, recouping some of the previous week’s losses.
Copper for March delivery (HGH11 460.15, +2.20, +0.48%) gained 4 cents, or 0.8%, to $4.62 a pound on the Comex division of the New York Mercantile Exchange. A close around that level would supplant copper’s record close of $4.58 on Feb. 4.
“Supply is likely to be constrained in the foreseeable future as the mining industry has not responded quickly enough to recovering demand and is also battling against declining ore grades,” analysts at Commerzbank said.
In another bullish sign, speculative financial investors increased their bets prices will go higher by almost 14% in the week ended Feb. 1, Commerzbank wrote in a note to clients, citing Commodity Futures Trading Commission data.
Meanwhile, April gold (GCJ11 1,347, -2.00, -0.15%) added $1.60, or 0.1%, to $1,350.60. The contract had been lower for most of Asian hours and in electronic trading earlier Monday.
Gold had sustained a $4-an-ounce Friday loss, amid speculation that Hosni Mubarak might soon resign as Egypt’s president, something that would diminish gold’s safe-haven appeal. Mubarak has indicated he will step down, but he’s vowed not to do so immediately.
“The situation in the Middle East is likely to remain fluid and can offer both support and pressure on prices,” said analysts at MF Global.
Also Monday, silver for March delivery (SIH11 2,910, +3.60, +0.12%) rose 15 cents, or 0.5%, to $29.22 an ounce.
However, platinum futures declined modestly, with the April contract (PLJ11 1,844, -2.10, -0.11%) off $1.40 to $1,847.20 an ounce, coming off its best since July 2008.
