Copper closed up for a second consecutive day on Wednesday, as another round of positive economic data reinforced stronger demand prospects globally for industrial metals in 2011. Copper, often seen as a good barometer for economic conditions, rallied after the release of figures showing stronger-than-expected industrial output in the eurozone and a sharp rebound in German gross domestic product last year.
"We had positive macro data flow supporting expectations of robust demand recovery further down the line," said Gayle Berry, an analyst at Barclays Capital. "This is a positive environment for industrial metals." COMEX copper for March delivery rallied 6.25 cents or 1.4 percent to close at $4.4115 per lb, moving closer to its record peak at $4.4980.
"The potential for global demand just continues to go up and up, and I think we're going to see at least 50 cents higher from where we are now in the coming weeks and months," Bill O'Neill, partner at LOGIC Advisors in Upper Saddle River, New Jersey, said of the COMEX market.