A range of commodities have moved up in price on global exchanges as positive news on the global economy emerges.
Copper rallied up to $7,820 (£4,903) on the LME after investors believed that European leaders were close to agreeing a package to solve the European debt crisis.
There was also positive news from China where showed the country recorded record job growth in the third quarter, particularly urban employment suggesting despite a recent slowdown that growth is likely to remain strong.
Additionally, the S&P GCSI gauge of 24 commodities has risen by 7.4 per cent in October, which looks set to be the biggest monthly advance this year. Energy and agriculture are leading the way, but other commodities are also looking strong.
With US house prices and manufacturing also unexpectedly growing, combined with the positive European and Chinese news, hedge funds have begun to move back into commodities on the basis that the global economy appears to be growing well again.
As a result of this, the dollar continues to strengthen and yesterday was up to 1.5949 against the pound. On 6 October, the exchange rate was 1.5302.
Aluminium also increased to $2,238 (£1,403) today on the news.
Three-month copper yesterday increased to $7,380 (£4,627) from Friday’s $7,084 (£4,453).
Aluminium increased yesterday to $2,180 (£1,367) from $2,136 (£1,343) at the end of last week. Alloy was up to $2,150 (£1,348) from $2,100 (£1,320) on Friday.
Lead moved up to $1,965 (£1,232) from Friday’s $1,866 (£1,173). Nickel increased to $19,050 (£11,944) on Monday compared to $18,725 (£11,770) at the end of last week.
Tin was the only metal to finish lower yesterday on $21,755 (£13,640) from Friday’s $21,850 (£13,734). Zinc was up to $1,861 (£1,167) from $1,810 (£1,138) on Friday.
Steel was a touch up at $525 (£329) from $520 (£327).