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Copper Heads to Second Weekly Loss, Gold Advances

May 25, 2012 at 1:19 by Vladimir Vyun

Copper headed to the fourth consecutive weekly loss today as concerns about the situation in Europe continued to plague markets. Copper is one of the most-used industrial metals and its performance is often a good indicator of the health of the global economy. The Standard & Poor’s GSCI index, which tracks 24 raw materials, fell 3.7 percent this year. Certainly, that indicator does not look healthy now. As Guy Wolf, a strategist at Marex Spectron Group, said:

Copper tends to be a reasonably good signal of what’s going on in the real world. Europe has become a more immediate concern. Most people in the copper market were already concerned about the outlook in China. We’re looking for prices to find a floor at lower levels in the next couple of months.

Copper traded at about $3.4350 per pound as of 1:09 GMT today on COMEX after it slid from $3.4675 to $3.4250 yesterday.

Gold futures had their first advance in four days as central banks continued to buy the metal. The International Monetary Fund reported that Turkey boosted its reserves by 29.7 metric tons, while Kazakhstan, Mexico and Ukraine also expanded their stockpiles. Central banks are the biggest holders of the precious metal in the world. June contract for delivery of gold advanced 0.6 percent to $1,557.50 per ounce.

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