Copper gains on optimism about Chinese demand

AP reported that copper prices rose 2% on hopes that China's demand for the metal may increase. The world's second largest economy has a voracious appetite for commodities such as copper which is used in manufacturing, construction and infrastructure. Investors have worried that China's demand may slip because of the government's measures to curb inflation and slow economic growth.
Reports surfaced this week that inventories fell at the Shanghai Futures Exchange which could indicate copper purchases are picking up, Barclays Capital analysts said in a research report.
Copper for July delivery rose 7.5 cents to settle at USD 4.186 a pound its fourth consecutive day of gains. July platinum gained USD 21.90 to settle at USD 1,800 an ounce and June palladium rose USD 2.70 to USD 759.90 an ounce.
Matt Zeman analyst of Kingsview Financial said that gold and silver prices were supported by investors looking for stable assets because of uncertainty over Europe's sovereign debt problems and recent signs of slowing in the US economy.
Greece's main opposition conservative party rejected a government plea for an agreement on new austerity measures. European leaders have demanded an agreement between Greece's two largest parties to ensure that an emergency loan program can run smoothly beyond the next general election, which is due in 2013.
June gold rose USD 13.50 to settle at USD 1,536.30 an ounce and July silver gained 53.3 cents to USD 37.863 an ounce. Most commodities benefited from a weaker dollar, although overall trading was light ahead of the Memorial Day weekend. Since commodities are priced in dollars buyers who use other currencies get more for their money when the dollar is weak.
(Sourced from Associated Press)