Copper heading for the third consecutive weekly gain

Copper heading for the third consecutive weekly gain as European Union leaders agreed on a plan to contain future crises of debt and economic reports in the U.S. and Germany strengthen the prospects for demand for the metal.
EU leaders agreed to amend the treaties of the block to create a permanent mechanism for crisis management in 2013. U.S. index leading economic indicators rose in November by the most in eight months, a sign of recovery will strengthen next year. German business confidence gained to a record in December as we told yesterday here.

"People are more optimistic than two months ago, " said Michael K. Smith, president of T & K Futures and Options in Port St. Lucie, Florida. "The U.S. will continue to grow worldwide."

Copper futures for March delivery added 2.7 cents, or 0.7 percent, to $ 4.143 a pound at 10:58 am on the Comex in New York. Before today, the metal gained 43 percent since 1 July, as global inventories declined.

"We are still looking for more, " said Kevin Tuohy, a metals trader at MF Global UK Ltd. in London. "Copper will be driving the other metals."

On the London Metal Exchange, copper for delivery in three months rose $ 74.50, or 0.8 percent, to $ 9,065.50 per metric ton (4.11 dollars per pound). Prices reached a record U.S. $ 9267.50 on 14 December.

Tin, lead, aluminum and zinc also gained on the LME. Nickel was unchanged.