Bloomberg reported that copper rose the most in more than a week as US building permits jumped to 4 year high adding to signs of improvement in the housing market.

Commerce Department figures showed that building permits, a proxy for future construction increased to an 812,000 annual pace in July, the most since August 2008. Construction generates about 40% of demand for the metal, used in pipes and wiring. The Standard & Poor’s GSCI Index of 24 raw materials climbed as much as 0.9%.

Mr Adam Klopfenstein the senior market strategist at Archer Financial Services Inc said that “Any time you see a positive report on housing, that’s bullish for copper. Signs of stability and traction in the housing market will lend support to copper and we’re seeing broader strength in commodities and equities.”

The permits figures add to signs of recovery in the US real estate market. A private report yesterday showed builder confidence climbed in August to the highest level in more than 5 years. On the London Metal Exchange, copper for delivery in three months advanced 0.9% to USD 7,449 per tonne. Aluminum, lead, tin and nickel also rose in London. Zinc fell.

Source - Bloomberg

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