Copper prices rise amid reports on consumer spending, housing prices

Copper prices rise on improving economic news

DENVER — Copper prices rose Tuesday amid positive news about housing prices and consumer spending that may signal stronger demand for the metal.

Gold and silver fell, energy rose and grains were mixed in light trading. Wall Street’s volume was light, too, as many traders took the day off for Passover or in advance of Easter.

Copper often rises on positive economic news because it is used in an array of consumer products, from home construction to electronics and automobiles.

The Standard & Poor’s/Case-Shiller home price index, which measures home values in 20 major metropolitan markets, rose 0.3 percent in January, an indication that home prices are starting to slowly recover.

Also, the Conference Board said its consumer confidence index rose to 52.5 in March from 46.4 last month. While that’s an improvement, the index is still a far way from 90, which would indicate the economy is on solid footing.

“When you see the outside markets really not lending a lot of support one way or the other today, the market’s going to focus on its internal fundamentals,” said Adam Klopfenstein, a Lind-Waldock senior market strategist.

Copper also has been helped by growth forecasts in China, which is a major importer of the metal. The World Bank earlier this month forecast China’s growth rate to be about 9.5 percent in 2010.

Copper for May delivery rose 2.8 cents to settle at 3.5635 a pound. June gold fell $5.80 to settle at $1,105.70 an ounce and May silver fell 5.7 cents to 17.330 an ounce.

In the grains sector, trading was mixed ahead of a crop planting forecast that will be issued Wednesday by the Agriculture Department.

In May contracts, wheat rose 7.25 cents to $4.72 a bushel and soybeans rose 6.5 cents to $9.74 a bushel. Corn fell 2.5 cents to $3.5450 a bushel.

Benchmark crude for May delivery rose 20 cents to settle at $82.37 a barrel on the New York Mercantile Exchange.

In other Nymex trading, heating oil for April delivery rose 0.59 cent to settle at $2.1247 a gallon. Trading on the April contract is set to expire Wednesday so many investors have shifted to the May contract, which added 0.3 cent to settle at $2.1316 a gallon.

Gasoline for April delivery gained 1.34 cents to settle at $2.2747 a gallon, but most of trading has moved to the May contract, which settled at 2.2721, up 0.94 cent.

Natural gas for May delivery settled up 5.7 cents to $3.973 per 1,000 cubic feet.