Fund money, spot buys buoy aluminum
Dec 08, 2009 | 11:00 AM
| Anne Riley
Fund money continues to flow into the safe-haven commodities sector, providing the industrial metal complex an unusual year-end boost.
Aluminum, which traditionally posts a December price pullback as consumers look to run down their inventories before the end of the year, has shown an uncharacteristic firming this month at the hands of speculators, market participants said.
On the London Metal Exchange, three-month aluminum closed second-ring trade at $2,164.50 a tonne Tuesday, up 1.4 percent from $2,134 the previous day to the highest recorded settlement in nearly 14 months.
Fund buying was behind the run-up, sources said. On Monday, Federal Reserve Board chairman Ben Bernanke reaffirmed that U.S. interest rates are likely to remain low for some time, contributing to a weaker dollar and enticing hedge funds to continue their investment in the commodities sector.....
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