Copper Futures Up in November on Positive U.S. Housing Forecast
Copper futures, along with other commodities, climbed in New York after a report released by the U.S. Commerce Department showed that construction works of U.S. homes grew more than expected in November.
March delivery of copper futures extended by 1.8 per cent to close at $3.3695 per pound on the Comex in New York. Europe's maddening debt crisis and waning demand from China have made the metal tumble by 24 per cent this year.
Also on the London Metal Exchange, copper for delivery in three months increased by 2.1 per cent to $7,410 a metric ton ($3.36 a pound).
U.S. builders have reneged works on most homes in more than a year, an indicator the market may already be stabilizing as it enters the new year 2012. Data from the U.S. Commerce Department showed housing starts in November spiked to an 18-month high.
"The U.S. is showing slow but consistent improvement," Matthew Zeman, a strategist at Kingsview Financial in Chicago, told Bloomberg News. "Trading is also going to be dictated by what the dollar is doing in this low-volume week ahead of the holidays."
The U.S. is the world's second-biggest copper buyer, next to China.
"There's some worry about China slowing down," Zeman said. "People will continue to watch Europe and China."