METALS-Copper soars to biggest weekly gain in 5 weeks

Fri Dec 2, 2011 7:26pm GMT
 

* Copper jumps nearly 10 percent on the week

* Global central bank liquidity intervention spurs rally

* Upbeat U.S. data, falling warehouse stocks underpin

* Coming up: U.S. non-manufacturing index on Monday

By Chris Kelly and Silvia Antonioli

NEW YORK/LONDON, Dec 2 (Reuters) - Copper posted its first weekly gain in five weeks on Friday as it pushed near $8,000 per tonne on the back of persistent inventory tightness and a move this week by central banks to boost liquidity.

With the exception of tin futures , which lost nearly 4 percent this week, investment demand for the base metals was up sharply. One standout performer was aluminium , which surged nearly 7 percent after a brief dip on Monday below $2,000 per tonne, its lowest since July 2010.

Copper rallied nearly 10 percent this week, outperforming safer havens like gold and climbing back near its late-October peaks. The move followed a central bank decision to inject liquidity into a distressed banking system, which boosted investor confidence and prices of assets such as base metals.   Continued...

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