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Copper Jumps to 10-Month High as Manufacturing Buoys Outlook

[Minor metal] Domestic Selenium Prices Remain Firm

LONDON, Aug. 4 -- Copper prices soared to the highest in 10 months as gains in U.S. and Chinese manufacturing signaled rising demand for industrial materials.
&nbsp;&nbsp;&nbsp; Chinese manufacturing expanded last month at its fastest pace in a year and U.S. factory activity reached an 11-month high, reports showed today. Copper has surged 94 percent this year on speculation that a global economic recovery will boost demand for the metal used in pipes and wires.
&nbsp;&nbsp;&nbsp; &quot;The No. 1 factor today was the positive economic data,&quot; said Joel Crane, a Deutsche Bank AG commodities analyst in New York. &quot;It adds more fuel to the fire of the market really believing in the economic recovery.&quot;
&nbsp;&nbsp;&nbsp; Copper futures for September delivery jumped 11.5 cents, or 4.4 percent, to $2.7385 a pound on the Comex division of the New York Mercantile Exchange. After the close of floor trading, the price reached $2.769, the highest for a most-active contract since Oct. 2.
&nbsp;&nbsp;&nbsp; A decline in the dollar also boosted commodity prices, Crane said. The greenback fell to the lowest since late September against a basket of six major currencies.
&nbsp;&nbsp;&nbsp; &quot;The economic optimism, coupled with the massive move in the dollar, created the right recipe for commodities today,&quot; Crane said.
&nbsp;&nbsp;&nbsp; The Reuters/Jefferies CRB Index of 19 raw materials jumped as much as 3.8 percent to the highest since Nov. 6.
&nbsp;&nbsp;&nbsp; Copper for delivery in three months surged $281, or 4.9 percent, to $6,000 a metric ton ($2.72 a pound) on the London Metal Exchange. Earlier, the price reached $6,040.50, the highest since Oct. 2.
&nbsp;&nbsp;&nbsp; Surpassing $6,000 gives copper &quot;the ability to see a move through to $6,400,&quot; Michael Jansen, an analyst at JPMorgan Securities Ltd. in London, said in a report. The gain, following July's 15 percent advance, may bring &quot;forward consumer restocking,&quot; Jansen said.
&nbsp;&nbsp;&nbsp; Nickel, zinc, aluminum, lead and tin also rose in London.
&nbsp;&nbsp;&nbsp; (Source: Bloomberg)
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