5 April 2006

Business Day - News Worth Knowing

Business Day - News Worth Knowing: "LONDON - Copper is likely to continue its way towards $6,000 a tonne as speculative flows of money overwhelm producers’ ability to raise output, analysts said today.
'Copper has exceeded even the most bullish analysts’ targets and it is a futile exercise calling the peak. We have gone up so much in the last few days and it looks to be heading to $6,000,' Stephen Briggs, analyst at investment bank, SGCIB, said.
'It’s a combination of the massive flow of fund money and the copper industry’s failure to meet production targets,' he said.
Briggs also said the only thing that could stop copper would be a long series of weak US economic data.
London Metal Exchange copper for delivery in three months (MCU3) was down $30 at $5,585/$5,595 from yesterday’s close. On Monday copper hit a record $5,616.
'Copper has now hit $5,600 and it is only a matter of time before we see $6,000 as fund money flowing into commodities seems almost limitless at this stage,' a Hong Kong-based metals trader said."

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