Commonwealth Bank Raises Targets for Gold, Copper Through 2011

LONDON, Dec. 3 -- Copper rose to the highest price in 14 months on speculation that a rebounding global economy will boost demand for the metal used in pipes and wires.
&nbsp;&nbsp;&nbsp; Metal markets probably will move toward balance or a supply deficit in the next 18 months as consumption recovers, creating a &quot;supportive landscape&quot; for prices, Goldman Sachs Group Inc. said. Copper prices have more than doubled this year as demand surged in China, the world's biggest user.
&nbsp;&nbsp;&nbsp; &quot;People are still buying copper on the belief that the economy is recovering and this will boost demand,&quot; said Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York.
&nbsp;&nbsp;&nbsp; Copper futures for March delivery rose 2.75 cents, or 0.9 percent, to $3.2585 a pound on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $3.273, the highest level for a most-active contract since Sept. 23, 2008.
&nbsp;&nbsp;&nbsp; This year, the dollar's slump against major currencies boosted the appeal of copper and other raw materials as alternative investments.
&nbsp;&nbsp;&nbsp; Manufacturing expanded at the fastest pace in five years in China in November and rose for a fourth month in the U.S., reports showed yesterday.
&nbsp;&nbsp;&nbsp; 'Leading Indicators' 
&nbsp;&nbsp;&nbsp; The statistics are &quot;leading indicators of industrial production and derived demand for raw materials,&quot; signaling more consumption, Morgan Stanley said in a report today
&nbsp;&nbsp;&nbsp; Copper for delivery in three months gained 0.7 percent to $7,125 a metric ton ($3.23 a pound) on the London Metal Exchange.
&nbsp;&nbsp;&nbsp; LME prices will average $6,834 a ton next year, 3 percent above a prior forecast, Goldman Sachs said. The metal has averaged $5,052 in 2009.
&nbsp;&nbsp;&nbsp; Zinc, aluminum, nickel, lead and tin prices also climbed in London.
&nbsp;&nbsp;&nbsp; (Source: Bloomberg)
&nbsp;