Dec. 14 -- Base metals closed higher on the London Metals Exchange Monday after positive economic news out of China and interest in new exchange-traded commodities boosted investor confidence.
LME three-month copper closed the day up 2.6%, at $9,220 a metric ton after a setting a fresh high of $9,325.25 a metric ton earlier in the day.
The outlook for the metals has been generally improving in recent weeks amid a spate of more positive economic figures from around the globe.
"Copper's strength is part of a wider issue," said Dan Smith of Standard Chartered Bank. "The global economy is turning around and China is particularly strong."
Hopes for copper's continued strength were boosted after China--the world's top metals consumer--chose not to raise interest rates over the weekend, a move that would have slowed the country's economic growth. In addition, China reported a 5.1% rise in its consumer price index, signaling an expanding economy.
Though interest rates may still rise, metals investors were acting partly out of "relief" over China's current decision, MF Global analyst Edward Meir said.
Analysts also attributed the introduction to ETF Securities' new copper, nickel and tin exchange-traded commodities last week to Monday's strong performance.
Tin, which has been gaining in line with copper on underlying supply fears, closed 1.3% higher on Monday's kerb close at $26,100 a metric ton. Nickel closed up 2.2% at $24,515 a metric ton.
Analysts said copper will continue to climb. "The psychological target is probably the $9,500 to $10,000 a ton mark," said Meir.