US copper futures hit a 10-week high at the open on Thursday, supported by new record lows in the dollar and bullish technical chart patterns that signalled further upside ahead, traders said.
"This move has really been built on the technical bottom we put in August, and we have been continually getting (buy) signals on the way up," Larry Young, senior trader at Infinity Brokerage Services in Chicago, said, referring to the recent low of $3.0470 a lb on August 16.
By 10:44 am EDT (1444 GMT), copper for December delivery was up 3.30 cents at $3.6470 a lb on the New York Mercantile Exchange's Comex division, moving from an overnight low of $3.6140 to an early peak of $3.6775, its loftiest level since July 23.
Volume was estimated at 4,773 lots by 10 am Home re-sales represent 85 percent of the housing market. "The number was softer than median forecasts, but not as bad as some of the whisper numbers," said Ron Simpson, director of currency research with Action Economics in Tampa, Florida.
The euro rose to a record peak around $1.4189 before the data and was trading at $1.4151, up 0.15 percent on the day, according to Reuters data. A softer US currency typically makes dollar-denominated metals more attractive to investors holding other currencies.
Fundamentally, a two-month strike at Grupo Mexico's giant Cananea copper pit, looming industrial action at Southern Copper's Peruvian operations and expectations of increased demand highlight the market's tense supply situation, underpinning the recent bout of strength in the red metal.