Copper closed up over 1 percent on Tuesday, posting its fifth consecutive monthly gain, after a double-dose of positive macro data in the United States bolstered economic recovery prospects and reinforced a healthier demand outlook. Copper's rally bucked the usual bearish impact of a stronger US dollar and lingering fears about a wider debt crisis in Europe, and instead fed off of investor perceptions of a tighter supply/demand balance in the year ahead.
"For copper, everyone is focusing on the supply issue for next year and expected deficit," Societe Generale analyst David Wilson said. "Out of all the metals, fundamentally copper still looks best placed to see more upside." COMEX copper for March delivery rose 5.80 cents, or 1.5 percent, to settle at a two-week high at $3.8255 per lb.
Upside momentum in the industrial metal gathered steam after data showed US consumer confidence rose in November to its highest in five months and US Midwest business activity grew faster than expected - further evidence that the economic recovery is moving forward. "We continue to see a stream of data that I think is very constructive for the economy and for commodity prices," said Matthew Zeman, head of trading with LaSalle Futures Group in Chicago.
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