Reuters reported that London copper hit its highest in almost two months on Monday after data showed China's factory output growth accelerated to eight month highs in November but lingering worries that the euro zone may return to recession next year kept a lid on gains.
Three month copper on the London Metal Exchange rose 0.95% to USD 8,111.50 per tonne by 0706 GMT extending a small gain from the previous session when it logged a fourth week of gains in a row. Prices earlier hit USD 8,114 per tonne, the highest since October 19th 2012.
Signs of renewed vigor in China's factories have brightened the demand outlook for industrial metals while glimmers of improvement from sectors of the US economy such as housing and jobs are also acting to underpin prices. China is the world's top consumer of metals.
Ms Alexandra Knight an economist with National Australia Bank in Melbourne said that "We've been gathering signs that things in China are going to stabilize and hopefully improve in the year ahead. So the outlook is looking a little bit more favourable for industrial metals."
She said that "For the United States there's still the fiscal cliff which in the short term could create some headwinds, plus there is no doubt the weakness in Europe will have impact on trade and also on the euro which affects metals."
