Friday, February 4, 2011

Copper reaches $10,000 a Ton

Copper fell from a record after the dollar climbed, reducing the appeal of industrial metals as a hedge against inflation, and Chinese demand remained subdued.

The greenback rose as much as 0.9 percent against a six- currency basket, which would be the most in a month, as the mounting conflict in Egypt boosted demand for a haven. Tin, nickel, lead and zinc dropped. Markets in China, the world’s biggest metals consumer, are closed for the weeklong Lunar New Year holiday until Feb. 9.

“The sharp move of the dollar is the major driver in base metals,” said Daniel Major, an analyst at RBS Global Banking & Markets in London.

Copper for three-month delivery fell $15, or 0.2 percent, to $9,930 a ton ($4.50 a pound) at 6:10 p.m. on the London Metal Exchange. Earlier, the metal climbed to $10,000, the highest ever. (more)

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