It’s been a good week on the LME markets with most commodities enjoying modest gains. Also helping prices has been a steady AUD/USD which is currently sitting around the 104.3 levels. As previously noted there is currently a wave of optimism in the world markets which is fueling a small boom in most stock markets and helping to keep a floor on the major LME metals.

METALS-Copper at 4-mth peak as global growth outlook brightens

SINGAPORE, Feb 4 (Reuters) – Copper futures in London and Shanghai rallied to four-month peaks on Monday, boosted by brightening prospects for global demand after a string of reports last week showed industrial activity ramping up in the world’s top two economies.

U.S. manufacturing growth quickened in January and hiring across the economy increased in late 2012, while Chinese factories extended a modest rebound, suggesting a global economic recovery remains on track.

Monetary easing plans announced by the U.S. Federal Reserve on Friday also buoyed risk appetite in the Asian timezone, lifting metals.

“Of course improving European and U.S. data will be helping investor confidence, but China accounts for the biggest share of real demand. I have full confidence that copper prices will surprise on the upside between now and the end of May,” said analyst Judy Zhu of Standard Chartered in Shanghai.”

Fund managers’ ardour for gold cools as economic fears recede

LONDON, Feb 4 (Reuters) – Fund managers’ ardour for gold is cooling as the threat of a catastrophic event in the world economy recedes and expectations of a gradual economic recovery grow, fuelling demand for other assets.

Gold prices have traded in a broad sideways channel between $1,525 and $1,800 an ounce since falling back from a record $1,920.30 in September 2011, and have repeatedly failed to break back above $1,700 this year. A number of leading portfolio managers have reduced their exposure over the past year or plan cuts this year in response to the receding threat of a euro zone collapse or U.S. debt default.

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