Comex copper prices jumped this week in frenzied trading, after grinding to a 15-month low on October 20th. Futures rose for the next five sessions, climbing by 21% as Europe closes in on Greek debt deal.
Copper futures continued to rally Friday as the rush to risky assets in the wake of the euro-zone debt deal paused as investors scrutinized the details of the plan.
Futures on Thursday capped a frenzied rally that took futures to five-week highs, as investors anticipated progress in the effort by European leaders to shore up the region's battered financial system.
The benchmark contract surged along with other growth-sensitive assets such as stocks and some commodities on Thursday after the news that euro-zone leaders had agreed to an outline of a plan to ease Greece's debt burden, boost the currency union's bailout fund and pump cash into its banking system.
The most actively traded copper contract, for December delivery, recently rallied to $3.7250 a pound on the Comex division of the New York Mercantile Exchange.
Currency markets provided a headwind to copper on Friday, as the euro drifted lower against the U.S. Dollar after touching its highest levels since early September. A stronger dollar can hit dollar-denominated commodities by making them more expensive for buyers using other currencies.
But after futures grinded to a 15-month low on Oct. 20, some investors began to view the market as undervalued should European leaders succeed in staving off a financial crisis. Futures rose for four of the next five sessions, climbing by 21% as euro-zone officials closed in on a debt deal.
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Dow Jones Newswires
10/28/2011 2:05 PM
