Copper exploded above $8,000 per tonne on Thursday after a deal by European leaders to resolve the two-year-old eurozone sovereign debt crisis ignited a cross-commodity relief rally. Similar to previous "risk-on" rallies in recent days, copper led the charge with a 6-percent gain - its third rally of 6 percent or more in the past five trading days. Other base metals jumped in step with the red metal.
Zinc, nickel and lead all climbed more than 5 percent in the session. Just weeks removed from its largest monthly and quarterly declines that pressured prices in London and New York to 2011 lows, copper prices are once again on the rise, with strong technical momentum forcing many market bears to cover during the October surge.
"The volatility has been enhanced on both sides. We failed to break $3 on the downside, and it has been just a parabolic move up from there," said Adam Klopfenstein, Senior Market Strategist. In New York, the key December COMEX contract shot up by 20.20 cents or 5.8 percent to settle at $3.6920, after moving between $3.4980 and $3.7135, a high dating back to September 22. Volumes, at a little more than 65,000 lots in New York, remained largely in line with their 30-day average, according to preliminary Thomson Reuters data.
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