Copper concluded 2010 with a run of record highs on Friday as undimmed demand from China and the prospect of fresh fund investment had analysts pointing to further gains next year. In its December forecast, Goldman Sachs said it expected prices to hit $11,000 this time next year.
US copper futures on the COMEX gained 33 percent this year after a 1.9 percent rise to $4.4470 per lb, having logged its latest record high of $4.4520. A sharp drop in the US dollar aided gains on Friday amid trade volume that was about one-third the norm at 12,000 lots. After a trendless first half of the year, copper prices climbed about 55 percent rise in the second half of the year.
The commodities sector - from gold to grains to oil - has been the standout performer in 2010, beating bonds, currencies and shares. While many analysts expect broad gains to continue, some see base metals as among the most attractive. BNP Paribas sees a 500,000 tonne deficit in the roughly 20 million tonne market next year, and believes that markets are already pricing in tighter conditions.
Comments
Comments are closed.