Tags: Gartman | Copper | Prices | US | Recovery

Gartman: Copper Prices Pointing to US Recovery

Thursday, 21 Jul 2011 09:00 AM

Copper prices have long been described as a weather vane for the U.S. economy, and today, they're indicating an end to the U.S. soft patch, says investor Dennis Gartman.

Copper, which is needed in construction and other growth-oriented activities, has been on the rise since May.

All base metals are up 13 percent to 15 percent since then as well.

"That tells, I think, that there is strength globally, not just here in the United States but around the rest of the world," Gartman says, according to CNBC.

Housing starts, meanwhile, rose more than expected in June, which bodes well for the red metal.

The U.S. notwithstanding, investors should use Chinese economic indicators as tea leaves for copper.

"We have to get used to the fact here in the United States that we are no longer the big dog in the hunt," Gartman says.

"China is becoming a bigger dog every day."

That may spell and end to the rally, traders say.

China has been taking steps to cool is economy, including raising interest rates and other measures that could slow the manufacturing sector there.

"China has been struggling with tight credit for some time," says Julien Garran, an analyst at UBS AG in London, according to Bloomberg.

"Now we’ve also got Europe deteriorating, slowing demand in the West, as well as in other emerging markets. For us, that means the fundamentals are turning down."

Copper is trading around $9,682 a metric ton on the London Metal Exchange and $4.4045 a pound on the Comex in New York.

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Copper prices have long been described as a weather vane for the U.S. economy, and today, they're indicating an end to the U.S. soft patch, says investor Dennis Gartman. Copper, which is needed in construction and other growth-oriented activities, has been on the rise...
Gartman,Copper,Prices,US,Recovery
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2011-00-21
Thursday, 21 Jul 2011 09:00 AM
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