Copper prices jumped on Thursday, along with other base metals such as nickel and zinc, after China regulators were said to consider a probe into metal short-selling in the local market.
Comex copper for March delivery rallied 2.67%, to trade at $2.104 a pound during morning hours in London. It earlier increased by as much as 3.93% to a session high of $2.133, the most since November 16.
Meanwhile, three-month copper on the London Metal Exchange spiked 2.73% to $4664.25 a metric ton.
Prices were boosted after reports that China's smelters have scheduled a meeting to consider taking action against falling prices.
Reuters reported earlier that the state-controlled metals industry institution, China Nonferrous Metals Industry Association, proposed on Monday that the government scoop up aluminum, nickel and minor metals including cobalt and indium, people with knowledge of the matter said. Although it is not clear if the authorities will agree to the proposal, the approach underlines the extent to which loss-making smelters in the world's top producer and consumer are suffering from low prices.
The proposal did not include copper, but it is likely to revive memories of 2009, Reuters says, when the State Reserve Bureau (SRB) in Beijing swooped in to purchase more than 700,000 tonnes of copper on the domestic and international markets.
On Thursday nickel futures jumped 2.1% while zinc added 3.74%.
Separately, gold struggled near six-year lows after U.S. economic data on Wednesday reinforced expectations for a Fed rate hike next month.
Comex gold for December delivery was last seen at $1,070.80 a troy ounce, up 0.07%, while Comex silver for December delivery rose 0.14% to trade at $14.175 an ounce.
Credit: mql5.com
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