Copper Gains in New York as Investors Close Bets on Lower Prices

Bloomberg reported that copper rebounded on concerns that investors are buying the metal to close out bets on lower prices.

The market news is quoted as saying:

Speculators were the most bearish on copper since July 2009, as managed-money funds held net-short positions in copper futures and options, data from the U.S. Commodity Futures Trading Commission showed last week.

“Traders are building short positions and will need to cover in the event of a rally, which could lead to sharp jumps,” Angus Staines, an analyst at UBS AG in London, wrote in an e-mail today. The so-called short-covering denotes purchases to close out bets on lower prices.

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