Copper prices climbed to a seven-week high on Friday, buoyed by dwindling inventories and a weaker dollar. However, the metal's 3.3% weekly gain prompted some investors to lock in profits,
causing prices to ease back. As of 1050 GMT, benchmark copper on the London Metal Exchange (LME) was up 0.4% at $9,093 a tonne, after reaching $9,141.50, the highest since February 23. Copper prices for electrical wiring reached a seven-month high of $9,550.50 in January, but have since retreated due to sluggish Chinese demand.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange are down 4.0% this week, while LME-registered warehouse stocks have hit their lowest levels since 2005. The weaker dollar has also made metals more attractive to buyers holding other currencies. However, some analysts doubt that copper will rally further due to a lack of support from reduced supply or increased demand. Photo by Hi-Res Images of Chemical Elements, Wikimedia commons.