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Copper Rises at Fastest Pace Since June 25

July 20, 2010 at 18:56 by Andriy Moraru

The copper grew at the fastest speed since June 25 today as the markets reacted to the increased building permits that were reported in United States today. Today’s growth was also spurred with a continued decline of the commodity’s stockpiles.

Copper is a major beneficiary of the growing real estate market. For the first time since March, the U.S. building permits showed a growth — from 574,000 to 586,000 (seasonally adjusted annual rate). It surpassed rather pessimistic growth expectations by the market analysts. According to them, any more or less good news from the housing market are going to be helpful for copper.

Copper stockpiles monitored by the London Metal Exchange decreased by 0.8 percent or 3,250 metric tons today. That’s 23rd straight session of decline of the copper stockpiles. Some analysts believe that the copper has left the bearish trend zone and is going to be bullish until the end of the year and for some part of 2011.

Spot copper is currently trading near $6,645.00 per metric ton as of 16:50 GMT after opening at $6,517.00 today. It has gained 1.93 percent during the day — the biggest upward movement since June 25 (3.03 percent).

If you have any questions and comments on the commodities today, use the form below to reply.

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