TGS 0.00% 4.9¢ tiger resources limited

great time to be starting a copper mine

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    UPDATE 2-COMMODITIES-Gold pierces $950; copper at 21-month peak
    02.21.08, 4:58 PM ET

    NEW YORK/LONDON (Reuters) - Investors wary of slumping stock markets poured money into commodities Thursday, pushing gold at one point to record highs above $950 an ounce and copper to 21-month peaks.
    Before 2008 began, commodity prices already had surged to new highs on worries about shortages and expectations of strong demand. A weakening dollar also prompted producers to protect margins by raising prices.
    But analysts say this year's rise has been fueled mostly by new money looking for high returns and a home away from the turmoil in equity and credit markets.
    "There's been no new news," said Frances Hudson, global thematic strategist at London fund manager Standard Life. "They (investors) may be backing away from things like credit derivatives and playing in commodity markets instead."
    U.S. copper futures closed almost 3 percent up. COMEX copper for March delivery ended 10.20 cents higher at $3.8105 a lb after touching $3.8465 -- the highest level for a second-month contract since May 30, 2006.

    Traders said if the market kept up its momentum, it could approach COMEX's all-time high of $4.16/lb for copper.

    In U.K. trade, copper for delivery in three months on the London Metal Exchange touched $8,445 a tonne, its highest level since May 24, 2006, before ending up 3.4 percent at $8,430.
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