US copper futures charged to a new five-month top above $3.60 per lb on Friday, with the bullish prospect of a cheap dollar and improved demand outlook through the end of the year powering the recent price momentum. Copper for December delivery finished up 2.75 cents at $3.6180 per lb on the COMEX metals division of the New York Mercantile Exchange.
Ranged from $3.5655 to $3.6360, a new high for the fourth position futures contract dating back to mid April. COMEX estimated final copper futures volume at 24,441 lots, in line with Thursday's count of 24,791 lots. Open interest grew by 23 lots to 145,665 contracts as of September 23.
Copper rally driven by weak dollar outlook and improved demand prospects after US Federal Reserve this week indicated it may consider further quantitative easing - analysts. Dollar fell against basket of currencies to its lowest level since February as stronger-than-expected data in Europe and a drop in US durable goods orders hurt demand for the greenback.
Flat new US home sales for August reinforced view that the Fed may provide additional monetary easing to help the economy. Copper buoyed by growing supply tightness reflected in dwindling exchange-monitored warehouse stock levels - analysts. COMEX copper warehouse stocks fell by 317 short tons to 87,245 short tons as of Thursday. LME copper ended up $60 at $7,945 a tonne, after hitting a new five-month peak at $7,990 a tonne.
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