Forexpros – Copper futures advanced on Monday, climbing to a three-week high as investors await further developments over a plan to resolve the euro zone’s debt crisis, while a disruption to supplies at the world’s second largest copper mine underpinned prices.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.443 a pound during European morning trade, gaining 1.02%.
It earlier rose by as much as 1.45% to trade at USD3.463 a pound, the highest price since September 27.
At the conclusion of the Group of 20 summit in Paris on Saturday, world financial leaders urged policy makers in the euro zone to deal “decisively” with the region’s ongoing debt crisis.
European leaders were expected to complete the rescue plan at a summit on October 23, in time to present to a meeting of G-20 leaders early next month.
The planned proposals include measures to restructure Greek debt, recapitalize European banks and increase the size of the region’s bailout fund, the European Financial Stability Facility.
However, copper futures came off their highs as the U.S. dollar reversed losses against the euro after German Finance Minister Wolfgang Schaeuble warned earlier that the upcoming EU summit would not produce a definitive solution to region’s debt crisis.
Meanwhile, copper prices were supported as a worsening strike at Freeport McMoran Copper & Gold’s Grasberg mine in Indonesia led the company to halt operations at the mine, which is the world’s second largest.
“All accesses are blocked, including the main entrance to the mine and the seaport,” Freeport Indonesia spokesperson Sinta Sirait said earlier Monday, while adding that it remains unclear when the company will resume operations.
Copper traders were awaiting Tuesday’s report on Chinese gross domestic product for the third quarter to gauge the economic strength of the world’s largest consumer of the industrial metal.
Elsewhere on the Comex, gold for December delivery rose 0.41% to trade at USD1,689.95 a troy ounce, while silver for December delivery gained 0.78% to trade at USD32.42 a troy ounce.
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