Copper lifts on the LME
Copper futures have closed slightly higher on the London Metal Exchange (LME), as investors continue to bet that stronger growth in China and the US will boost demand for the industrial metal.
The LME's three-month futures contract on Tuesday was up 0.1 per cent at $US7,130 a metric ton at the PM kerb close. The metal earlier peaked at $US7,212 a ton, its highest price since February 19.
Prices for the industrial metal have gained 14 per cent from March lows, as investors shake off concerns about a Chinese investigation into copper's use in the country's shadow banking system and focus on improving economic data in the world's biggest economies.
China, the world's largest copper consumer, last week reported that its manufacturing sector grew at the fastest pace in six months, a sign that a "mini-stimulus" launched by the government earlier in 2014 is finding its mark.
The US, the world's second-largest copper buyer, last week reported strong employment numbers for June, indicating the country's recovery may finally be kicking into high gear.
On a technical basis, copper looks likely to extend gains, said Karen Jones, a technical analyst at Commerzbank.
"LME copper has eroded major resistance at $US6,955 a ton/$US7,008 a ton," said Jones.
With these hurdles clear, the metal is on course to test $US7,234 a ton, above which a move to $US7,460 a ton could be on the cards, she said.
"Provided dips lower hold over the 55-day moving average at $US6,829 a ton, an upside bias is now preserved," she added.
