Copper Prices Go Higher as Inventories Shrink, Demand Rise
Copper gained today as global inventories declined, while demand is expected to pick up.
Global stockpiles fell 22 percent since March and were at the lowest level since October 2009 this month.
The European Central Bank injected money in Europe’s financial system by providing loans to European banks in an attempt to battle with the region’s crisis. Goldman Sachs Group Inc. predicted that Europe’s demand for copper will increase in the next quarter and prices will advance 26 percent in the next year.
The US economy continuously shows signs of improvement, improving prospects for industrial metals. Durable goods orders rose 3.8 percent in November after no growth was registered in October.
Copper rose from $3.4250 to $3.4470 per pound today on COMEX and earlier reached $3.4635 — the highest level since December 13.
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