Exchange traded funds (ETFs) in the copper sector gained ground Wednesday as base metals jumped and silver rallied to new 31-year highs.
The iPath Dow Jones-UBS Copper Subindex Total Return ETN (NYSEArca: JJC) opened higher by nearly 3% while PowerShares DB Base Metals Fund (NYSEArca: DBB) added 2.3%.
This week’s bid for Equinox Minerals by China may help reverse copper’s recent downtrend, Forbes.com reports.
Also this week, mining giant Freeport-McMoRan said Chinese demand for copper won’t be slowed as the country’s central bank boosts rates to hinder inflation.
Silver prices showed no signs of cooling Wednesday. The iShares Silver Trust (NYSEArca: SLV) rose more than 1%.
For full disclosure, Tom Lydon’s clients own SLV.
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