Copper rallies to 2-year highs

Copper prices hit their highest in more than two years on Tuesday, boosted by signs of robust demand from top consumer China, tight supplies, a weak dollar and a break of key technical levels.

Benchmark copper on the London Metal Exchange ended up 3.3 per cent at $US6,225 a tonne, having earlier touched $US6,234.50 a tonne, its highest since May 2015. Gains accellerated after New York opened.

“China growth is looking stronger, it’s encouraging at a time when you would normally expect a lull,” said Cantor Fitzgerald analyst Asa Bridle. “We have a perfect combination of decent demand and tighter supplies.”

CHINA GROWTH: China’s gross domestic product was up 6.9 per cent in the second quarter year-on-year, faster than the consensus 6.8 per cent and the government’s 6.5 per cent target.

CURRENCY: The US currency fell to a 13-month low against a basket of major currencies, making dollar-denominated metals cheaper for holders of other currencies and potentially helping demand.

SUPPLY: Disrupti…

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