Farallon Resources Ltd. (fka FRLIF)

[the cork]

Zinc climbs, Copper Advances in New York, London on Weakening Dollar, U.S.

Copper rose in New York and London, paring this week’s losses, as the dollar weakened and a U.S. employment report showed the jobless rate declined more than forecast.

The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, fell as much as 0.7 percent, making dollar-priced metals cheaper to holders of other monies.

Payrolls declined by 125,000 last month as the government cut 225,000 temporary workers conducting the 2010 census, Labor Department figures in Washington showed today. Economists projected a retreat of 130,000, according to the median forecast in a Bloomberg News survey. The jobless rate dropped to 9.5 percent from 9.7 percent. Economists had forecast the rate would rise to 9.8 percent.

The “U.S. payrolls report was slightly disappointing, but the sharp fall in the unemployment rate will help consumer sentiment” said David Thurtell, an analyst at Citigroup Inc. in London. “The softer U.S. dollar should underpin LME prices.”

Futures for September delivery gained 6.3 cents, or 2.2 percent, to $2.941 a pound at 8:44 a.m. on the Comex in New York. Copper for delivery in three months rose 2.5 percent to $6,490 a metric ton on the London Metal Exchange.

Comex copper dropped 5.4 percent this week as manufacturing in China and the U.S., the world’s largest metals consumers, expanded at a slower pace in June. The U.S. payrolls report will be followed at 10 a.m. in Washington by a report forecast to show factory orders fell 0.5 percent in May after a rise of 1.2 percent in the previous month.

Aluminum for three-month delivery on the LME advanced 1.8 percent to $1,960 a ton. Lead rose 1.6 percent to $1,762 a ton, nickel gained 1 percent to $19,180 a ton and zinc climbed 3.5 percent to $1,800 a ton. Tin rose 1.4 percent at $17,200 a ton.

http://www.bloomberg.com/news/2010-07-02/copper-rebounds-on-weakening-dollar-speculation-weekly-drop-was-overdone.html