Copper Rises, Remains Under Pressure
Copper rose today on hopes that recovery of the US housing market would increase demand for the metal that is used in construction. Existing home sales rose last month and tomorrow’s report is expected to show an increase of new home sales. Additionally, BHP Billiton put on hold the planned expansion of the Olympic Dam mine in Australia. The project should have increased copper output from the mine almost four times to 750,000 tons per year.
As for negative news, signs of global economic slowdown continue to weigh on industrial metals. Tomorrow’s reports from the eurozone and China are expected to show decline of manufacturing. Japan’s exports shrank 8.1 percent in July from a year ago, according to the Ministry of Finance, — another evidence that the global economy is not feeling well.
Copper rose from $3.4215 to close at $3.4605 per pound on COMEX today.
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