Speculators Sending Copper Higher

Copper analysts are the most bullish in three weeks after manufacturing expanded from the U.S. to Europe and hedge funds bet on higher prices for the first time since November.

Fourteen analysts surveyed by Bloomberg News expect prices to gain this week, four are bearish and six neutral. The metal reached a four-month high of $7,415.50 a metric ton on Dec. 27. Hedge funds and other large speculators are holding their biggest bullish bet since February, U.S. Commodity Futures Trading Commission data show.

While the metal has been in a bear market since April, prices rallied 12 percent from this year’s low in June as stockpiles slid to a 12-month low and Barclays Plc cut its forecast for next year’s supply glut. Global manufacturing climbed in November to the strongest since April 2011 and economists surveyed by Bloomberg expect world economic expansion to accelerate next year.

Bloomberg

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