Metals prices surge upwards

Copper enjoyed a buoyant day on the London Metal Exchange (LME) on Monday (August 16), with its spot price jumping 3.56% from US$1.291/lb to US$1.337/lb. The red metal's three-month price was equally bullish, rising by 3.43% to US$1.298/lb from US$1.255/lb. Dow Jones Newswires attributed the increase to the wider-than-expected US trade deficit, which was announced on Friday. These figures hurt the dollar but boosted copper. Another reason for the increase is the economic recovery currently taking place around the world. A report by Bloomsbury Minerals Economics revealed that world consumption of copper in 2004 has so far grown by 8% in comparison with last year. By the end of the year, the figure is expected to stand at 7.5% - the fastest increase in consumption since 1984. In terms of volume, copper demand has increased by 1.16Mt, the report added. GOLD Meanwhile, gold's spot price also traded well in London on Monday, breaking the US$400/oz barrier. It ended the day at US$401.65/oz, up 1.24% from US$396.75/oz. Continuing the upward trend, silver's spot price rose 3.24%, to US$6.69/oz from US$6.48/oz.