Copper gains on Europe manufacturing, US existing home sales data

Copper prices were higher Thursday after equities markets saw gains in Europe and the United States, manufacturing activity was reported higher in the Eurozone, the US dollar weakened, and existing home sales did not fall as much as expected in the United States.

September copper added 7 cents to $3.16 per pound in New York trade, while three-month contracts were up $160 to $7,010 per tonne on the London Metal Exchange after going as high as $7,050 per tonne earlier in the session.

Inventories in LME-monitored warehouses fell 1,100 tonnes to 416,525 tonnes, continuing a nearly month-long series of declines.

The National Association of Realtors reported that existing home sales in the US dropped by 5.1 percent in June to a three-month low, but analysts had expected the decline to be 8.1 percent.

The smaller-than-expected decline in home sales and the gain in manufacturing activity in the Eurozone helped improve sentiment regarding copper, which is used in both manufacturing and construction.

Prices for other base metals were also higher as zinc added $33.50 to $1,948.50 per tonne, lead was up $75 to $1,940 per tonne and nickel gained $750 to $20,250 per tonne.

Aluminium and tin were both untraded at the close in London, but last bids for aluminium were up $36 from Wednesday’s close to $2,044 per tonne after going as high as $2,061.75 per tonne earlier in the session, while the last bids for tin were $175 higher to $18,550 per tonne.

Precious metals prices were also higher as August gold added $3.80 to $1,195.60 per troy ounce and September silver was up 32 cents to $18.12 per troy ounce.