SHANGHAI, Jan. 5 (SMM) -- The US dollar was depressed by the recovered investor risk appetite, causing the US dollar index to drop to around 77.4. As a result, prices of crude oil, gold and other commodities advanced, and the upward momentum in the LME copper market continued. Coupled with labor strikes at Chile’s Chuquicamata mine, LME copper prices climbed higher, with prices ending at USD 7,495/mt, up USD 119/mt. LME copper inventories were up 75 mt to 502,400 mt.
SMM believes LME copper prices will test USD 7,500/mt, but prices will fluctuate in the USD 7,400-7,500/mt in the short term in view of pressure from profit-taking. Particular attention should be paid to the US non-agricultural employment rate for December 2009 to be released this Friday. If the data continues to grow, the US dollar will gain upward momentum.
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