Gold futures erased initial gains to finish flat yesterday, as a U.S. dollar bounce and signs of lagging physical jewellery demand prompted investors to take profits. Gold futures for August settlement closed unchanged at $954.70 (U.S.).


CLOSING PRICES (SPOT)

Gold US$/troy ounce 955.55 0.40

Silver US$/troy ounce 15.22 -0.04

Copper US$/lb 2.33 0.00

Lead US$/lb 0.78 0.01

Zinc US$/lb 0.72 0.01

Aluminum US$/lb 0.73 -0.01

Nickel US$/lb 6.73 -0.04

Oil West Texas US$/bbl 71.33 1.32

Nat Gas Henry Hub US$ mmbtu 3.56 0.03

Nat.Gas AECO C C$/gigajoule 2.64 -0.09

.
Copper strikes eight-month high


LONDON - Copper rose to an eight-month high on Thursday as data showing a fresh high in copper imports to China boosted sentiment, while aluminum was buoyed by another drawdown in stocks.

Copper for three-months delivery on the London Metal Exchange traded at $5,285 a tonne from a close of $5,180 on Wednesday. Prices of the metal used extensively in power and construction earlier hit $5,300, the highest since October 14.

A recent spate of improving economic data has helped lift copper prices by more than 10 per cent so far in June.

"We're in recovery mode," said Calyon analyst Robin Bhar. "The Chinese May data was very positive."

Data showed China's May imports of unwrought copper and semi-finished copper products hit a fresh high for the fourth straight month on continued arbitrage trade. Adding to speculation China could potentially lead an economic recovery, data showed a surge in investment in May for the world's third-largest economy and top copper consumer. But optimism was tempered by confirmation of a record slump in Japan's first-quarter GDP.

"People's perception of the future is very definitely improving," said Charles Kernot, a mining analyst at Evolution Securities. "Everyone seems to be happy, bullish and optimistic. It'll probably continue a little while."

Also underpinning gains, copper stocks at LME warehouses continued their trend of drawdowns, falling 1,100 tonnes to 293,175 tonnes and compared with a peak of around half a million tonnes in late February.

Aluminum, used in transport and packaging, traded at $1,673 from $1,645. Stocks dropped for the second time this week, down 1,675 tonnes but holding near a record high close to 4.3 million tonnes. Stocks also fell on two days the week before, marking the first stocks declines since April 20.

The drawdowns soothed investors after turmoil in the autos sector has hammered aluminum, and stocks have hit record highs almost consistently this year on waning demand for the metal.

Also signalling potentially stronger demand was a rise in cancelled warrants for aluminum - metal tagged to delivery - to 118,675 tonnes from 116,950 tonnes.

"(People are) still a bit nervous, but there's a much better tone across the aluminum market," Mr. Kernot said. "People are starting to look for stocks to start falling more."

Buyers in Japan and South Korea have been told they will not receive term aluminum from Russia's United Company RUSAL for the third quarter this year, forcing them to look elsewhere, trading and buying sources in the two countries said.

Analysts also warned demand the outlook for aluminum remained weak, as a potential economic recovery would likely be slow and drawn out, and ahead of a series of possible production restarts in China.

Among other industrial metals, zinc traded at $1,654 from $1,625, and hit an eight-month high of $1,658. Battery material lead traded at $1,791.75X from $1,751 and hit an eight-month high of $1,815.

Tin was at $15,700 from $15,750 and nickel was at $15,448 from $14,905.