Northern Empire Resources Corp. PSPGF

Copper Rising

[hcahoon]

https://www.miningnews.net/StoryView.asp?StoryID=41013 Hot metal prices Friday, June 17, 2005 METAL prices surged across the board overnight as a shortage of copper bit deeply and gold bugs rushed to buy their favourite commodity on speculation that gold was "de-coupling" from the U.S. dollar. In London, copper hit an all-time high of $US3347 a tonne after the latest stockpile report from the London Metal Exchange showed a continued decline, and mine production at several South American sites remained interrupted by civil unrest or natural disaster. John Meyer from Numis Securities told Reuters that cash copper prices "are perilously close to a staggering $US3550 a tonne as economic data out of China supports our view of continuing strong manufacturing growth in the region." Another trader said: "Copper is onwards and upwards. The market has been running short and they (short side speculators) have been caught on the wrong foot." On the LME, three month prices saw copper close at $US3317 after touching $US3343 at noon. The trend continued later in New York where copper for July delivery on the Commodities Exchange closed at $US1.5695 a pound, up US2.05c on the day. At one stage copper was trading as high as $US1.5850c. A New York dealer said: "There's no copper. Ultimately that's what it comes down to. Nobody's delivering copper in June." On the gold market, futures in New York hit a seven-week high at $US437.90 an ounce, up $US7 on speculation about a possible "de-coupling" from the U.S. dollar. A futures commission agent told Reuters that: "There's huge fund buying in gold, both short covering and perhaps new longs." The theory of de-coupling from the U.S. dollar has been talked about in the market for some time, especially with increased volatility in the relationship between the greenback and the euro. If de-coupling occurs it means that gold will return to trading in its own right as an alternative investment product and become more driven by the laws of supply and demand. China and India are the countries creating most demand for gold as both an investment and for growing jewellery use as both countries grow richer. In other markets, zinc rose marginally in London to $US1309/tonne, and aluminium was up $US11/t to $US1746. Among the precious metals, silver rose US4c to $US7.37/oz and platinum jumped sharply to $US891.50/oz, a gain of $US9.10, and its highest price since January.