US copper rallies after stronger US GDP, gold falls

Feb 29 (Reuters) - U.S. copper futures rallied on
Wednesday after the European Central Bank offered banks 530
billion euros of cheap money and after the U.S. reported a
faster-than-forecast 3.0 percent fourth quarter growth pace,
while gold slipped with the euro following the liquidity
addition. 	
                 	
    FUNDAMENTALS 	
    * Copper prices rallied to a more than two-week high after
banks snapped up more than 500 billion euros in cheap funding
from the European Central Bank, helping risky assets push 	
higher.   	
    * Three-month copper on the London Metal Exchange 
was $8,638 a tonne at 1318 GMT, up 0.4 percent from a close of
$8,600 a tonne on Tuesday. A session peak at $8,695.25 was its
highest level since Feb. 10.	
    * U.S. copper futures for May delivery jumped 2.65
cents to $3.9480. 	
    * Banks took 530 billion euros at the European Central
Bank's second offering of three-year funds, slightly above
forecasts, fuelling hopes that more credit will flow to
businesses and government borrowing costs will ease further.
  	
    * Gold eased, reversing a brief move higher after the
European Central Bank fed cash-hungry commercial banks over half
a trillion euros in cheap loans, further greasing the wheels of
the financial system, but depressing the euro's value. 	
    * Spot gold edged up 0.1 percent on the day to
$1,785.46 an ounce, bringing the gains for February to 2.6
percent, which would mark a second monthly gain.	
    * Continued failure of the price to breach $1,800 an ounce
could prompt some investors to book profits, analysts said.	
    * U.S. gold futures for April delivery fell by $5.70
cents an ounce to $1,782.70.  	
    	
    ECONOMY	
    * U.S. preliminary GDP for Q4 grew by 3.0 percent, faster
than forecasts of up 2.8 percent. 	
    * The U.S. economy's growth pace quickened in the fourth
quarter on slightly firmer consumer and business spending, which
could help to allay fears of a sharp slowdown in growth in early
2012. 	
    * February Chicago PMI due at 945 a.m. EST. Index expected
to rise to 61.5.	
    * Federal Reserve's Beige Book due at 2:00 p.m. EST (1900
GMT).	
	
    MARKETS 	
    * The U.S. dollar and the euro pared losses against the yen
on Wednesday after the release of stronger-than-expected U.S.
economic expansion data for the fourth quarter. 	
    * Brent and U.S. crude futures initially extended gains on
Wednesday after a report showed the U.S. economy grew at a
slightly faster rate than initially thought in the fourth
quarter.  	
     	
 Prices at 8:37 a.m. EST (1336 GMT)                          
 
                               LAST      NET    PCT     YTD
                                         CHG    CHG     CHG
 US gold                    1784.80    -3.60  -0.2%   13.9%
 US silver                   37.075   -0.065  -0.2%   32.8%
 US platinum                1727.00     3.50   0.2%   23.4%
 US palladium                719.95     0.20   0.0%    9.7%
 US copper                   392.70     1.50   0.4%   14.3%

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