Copper mart shrugs off Dubai worries
Nov 30, 2009 | 01:04 PM
| Tatyana Shumsky
Copper futures recovered from last week's losses on the London Metal Exchange as the market brushed aside threats of a Dubai default and a weaker dollar helped refuel the red metal rally.
Three-month copper closed second-ring trade on the LME at $6,832 per tonne on Monday, up 0.9 percent from $6,771 at the end of last week. March-delivery copper on the Comex division of the New York Mercantile Exchange settled at $3.177 per pound, up 1.6 percent from $3.1255 on Friday.
Red metal tags slumped over the Thanksgiving holiday after Dubai's state-owned holding company Dubai World asked creditors for a six-month hold on debt interest payments. The news rippled through international markets as investors and funds temporarily dumped riskier holdings like commodities in favor of safe liquid assets like the U.S. dollar.
"We're just going back to where we were now that Dubai got out of the way," a copper trader said. "People ran to the dollar to protect themselves, and the dollar went to $1.482 (vs. the euro). Now it's $1.5012 (on Monday) and copper is just following the dollar."....
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