Industrial metals surge on improved factory orders

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Associated Press

Posted on July 3, 2012 at 3:03 PM

Updated Tuesday, Jul 3 at 4:02 PM

Prices for industrial metals are surging on improving U.S. factory orders.

The government says factory orders rose 0.7 percent in May after two months of declines.

Copper gained 2 percent Tuesday to finish at $3.5345 per pound. Other industrial metals also ended higher.

Commodity prices are rising across the board on expectations that central banks may do more to promote global economic growth. The speculation is occurring in part because of disappointing June manufacturing data from the U.S. and China.

The Federal Reserve has extended a program to push down long-term interest rates and plans to keep short-term rates at record lows until at least late 2014.

Analysts say investors are hoping that the weak manufacturing data will prompt the Fed to implement other measures to aid the economy.

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