FU: Copper futures soar to 31-month high as China holds interest rates
Futures Pros -Copper futures soared to a 31-month high on Monday after China held back from increasing interest rates and as increased copper production and imports by China boosted investor sentiment.
On the Comex division of the New York Mercantile Exchange, copper futures for January delivery traded at USD 4.204 a pound during European afternoon trade, soaring 2.13%.
It earlier rose to USD 4.209 a pound, the highest price since May 5, 2008.
The People's Bank of China refrained from increasing interest rates at the weekend even after government data showed that consumer prices jumped 5.1% in November, a 26-month high.
Earlier Monday, the Chinese statistics bureau said the nation's output of refined copper climbed to 443,000 tons last month, 4.5% higher than the month before, as producers stepped up output following price gains.
The data followed a report by China's General Administration of Customs on Friday which said imports of copper into the country increased by 29% last month to 351,597 tons, rising for the first time in three months.
The report said that imports by China in the first eleven months of 2010 gained 0.7% to 3.95 million tons.
China is the world’s largest copper consumer.
Meanwhile, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.23% during European afternoon trade.
A weaker dollar makes U.S. commodities less expensive for importers holding other currencies.
Elsewhere, gold for February delivery jumped 0.73% to trade at a 3-day high of USD 1,397.15 a troy ounce, while silver for January delivery soared 3.29% to trade at a 4-day high of USD 29.64 a troy ounce during European afternoon trade, as investors sought a cheaper alternative to gold.
