Canada set for third-quarter growth: RBC

TORONTO - The latest forecast from RBC Economics suggests the Canadian economy is poised to show some growth in the third quarter.

RBC chief economist Craig Wright says improved markets, low borrowing rates and fiscal stimulus have moved the economy forward.

As a result, the bank predicts the economy will grow two per cent in the third quarter and by 2.4 per cent in the fourth quarter.

It says a sharp rebound in auto production and a recovery in the housing market will lead the charge.

The report also projects the Canadian economy will grow by 2.6 per cent in 2010.

The bank adds, however, that consumer spending is still being weighed down by the 8.7 per cent unemployment rate, which the bank predicts will edge higher by year's end.

In early 2010, RBC forecasts the unemployment rate will begin to fall and the hiatus in consumer spending will end. However, with the unemployment rate set to remain historically high, inflation is expected to remain below the Bank of Canada's mid-point target of 2 per cent.

Copper rises after Bernanke calls end to recession


LONDON - Copper climbed 1.6 per cent on Wednesday, as upbeat comments from the U.S. Federal Reserve Chairman Ben Bernanke on the economy and strong U.S. retail and manufacturing data lifted sentiment.

Stock markets and other commodity prices including gold climbed after Mr. Bernanke said the worst U.S. recession since the Great Depression was probably over. The U.S. dollar fell against a basket of currencies, also supporting metal prices.

Aluminum was at $1,885 a tonne from $1,855 a tonne, shrugging off stocks hitting a new record high of 4.629 million tonnes.

Zinc gained to $1,894 a tonne, versus $1,861.

Nickel rose to $17,246 from $16,750.

Battery making material lead was firmer at $2,222 from $2,166.5 a tonne.

Gold hits 18-month peak

LONDON - Gold hit 18-month highs on Wednesday as the U.S. dollar's slide to 2009 lows versus the euro sparked buying of the metal as an alternative asset, helping lift silver and platinum to multi-month peaks.

The precious metal now has its sights set on a new all-time high above $1,030 an ounce, traders said.

Spot gold rose to a high of $1,017.75 an ounce and was at $1,015.55 an ounce at 0924 GMT against $1,005.90 late in New York on Tuesday.

Silver prices rose to a 12-month high of $17.31 an ounce, and were later at $17.28, against $16.97 late on Tuesday. Its ratio to gold - which measures its value compared to the yellow metal - fell to 58.8 from around 64.5 a month ago.


Platinum hit a peak of $1,338, its firmest since September last year, and was later at $1,329 against $1,323, while palladium was at $294.50 an ounce against $291.50.

Oil hovers under $71


LONDON - Oil traded just below $71 (U.S.) a barrel Wednesday as an unexpected rise in U.S. crude supplies heightened investor concerns about weak consumer demand.

24 Hour Base Metals