LONDON- Copper touched its highest in more than two years as speculators extended their buying spree on a recovery in top metals consumer China while the dollar weakened.
Benchmark copper on the London Metal Exchange (LME) hit $6,850 a ton, its highest since June 2018, before paring gains to $6,837 for a rise of 0.8 percent.
Copper has surged by 55 percent since hitting 45-month lows in March and this marks the sixth consecutive week of weekly gains.
“It’s just phenomenal, the strong market we’re seeing right now. It’s really the China story and also about the overall momentum that has come into the commodities space,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“As long as we stay above the key uptrend, which today is at $6,700, then there’s no reason for the speculators, who have accumulated quite a sizeable long position in copper, to make any adjustments.”
Data this week showed that China’s industrial output accelerated the most for eight months in August while the OECD upgraded its economic growth outlook for China.