By BUSINESS REPORTER –
THE prices of copper on Brent crude futures rose by more than two per cent towards $63a barrel yesterday as Asian markets firmed into a holiday-shortened week and consensus spread that prices would likely remain above $60 for the rest of the year.
Reuters reports that the Brent rose 2.4 per cent $62.86 while the United States (US) crude was also up by 2.3 per cent at $58.45 a barrel.
While analysts said prices would likely remain over $60 barrel for the rest of the year, they also said that further large jumps were unlikely.
Beyond fundamental drivers, Reuters analyst Wang Tao said that Brent prices could drop as low as $41.99 per barrel in the next three months before receiving support, based on technical indicators, and that prices would unlikely rise above $70.
But copper prices inched down reversing gains from the previous session on concerns over global oversupply.
The prices for three-month copper on the London Metal Exchange slid by 0.14 per cent to $6,391 a tonne.
The most-traded copper contract on the Shanghai Futures Exchange dropped by 0.79 per cent to 45,690 yuan ($7,346) a tonne.
The prices of gold edged up on buying interest from Asia and as the dollar retreated, but gains were kept in check by stronger equities that dulled the metal’s safe-haven appeal.
Spot gold edged up by 0.4 per cent to $1,199.86 an ounce, after losing about two per cent last week.
Also helping was a rise in oil prices, which were boosted by expectations that Brent crude futures would likely remain above $60 for the rest of the year.
Investors believe higher oil prices could boost demand for gold, seen as a hedge against oil-led inflation.