Copper May Rise, Trade at $4 on Comex, on Growth, Survey Shows

Nov. 5 (Bloomberg) -- Copper may extend gains in London, with prices in New York climbing to $4 a pound for the first time since 2008, as global economic growth spurs demand for industrial metals, a survey showed.

Eight of 13 analysts, investors and traders surveyed by Bloomberg, or 62 percent, said the metal will advance next week. Four predicted lower prices and one forecast little change. Copper for delivery in three months was 4.2 percent higher for this week at $8,544.75 a metric ton at 2:17 p.m. yesterday on the London Metal Exchange.

Prices in London have jumped 16 percent this year, rising yesterday to the highest level since July 2008 as growth in China and stimulus spending by the U.S. Federal Reserve boosted demand prospects from industries including automobiles and construction. Copper in New York was $3.8955 a pound yesterday.

"Global demand continues to be underestimated and we are holding a $4 forecast,” said William O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey. "I see copper higher next week.”

The red bars on the attached chart are derived by subtracting bearish forecasts from bullish estimates, with readings below zero signaling the majority of respondents expect a decline. The green line shows the copper price. The survey data shown are as of Oct. 29.

The weekly copper survey has forecast prices accurately in 52 of the past 110 weeks, or 47 percent of the time.

This week’s survey results: Bullish: 8 Bearish: 4 Hold: 1