Copper May Advance on Chinese Demand Speculation-Survey
Source: Bloomberg, Anna Stablum (1/8/10)
"Copper is likely to rise next week on continued fund buying. . ."
Eight of 15 analysts, investors and traders surveyed by Bloomberg, or 53%, said copper would gain next week. Six predicted lower prices and one expected little change.
Prices dropped yesterday on the London Metal Exchange after China's central bank sold three-month bills at a higher interest rate for the first time in 19 weeks. Record imports into the Asian nation in last year's first half helped copper prices to more than double for 2009, the biggest annual gain in more than two decades.
"Copper is likely to rise next week on continued fund buying, spurred by optimism about the outlook for China," said Dan Smith, an analyst at Standard Chartered Plc in London.
Copper for three-month delivery was up 2.4% for this week at $7,554 a metric ton at 5 p.m. yesterday on the LME.
The weekly copper survey has forecast prices accurately in 33 of the past 71 weeks, or 46% of the time.
This week's survey results: Bullish: 8 Bearish: 6 Neutral: 1