London copper closed higher on Wednesday, boosted by positive data from the United States

U.
S.
home sales hit their highest level in more than eight years in April, signaling continued rapid U.
S.
economic growth and signaling an increased
likelihood of a Fed rate hike this year.
Traders said that after the opening of the US market, the momentum of covering short positions in the copper futures market accelerated, as speculators in the US market also covered short positions
.

The United States is the world's second-largest consumer of copper after China, so metal prices are generally sensitive
to the economic indicators it releases.
Copper is a major component of house construction, from pipes to electrical wiring
.

Copper prices hit a three-month low last week and fell 11% from the end of April to last week, allowing investors with short positions to take profits
.
Overall, copper price movements over the past day or so reflect some shorts taking profits, with bears dominating the market over the
past few weeks, analysts said.

The weakness of the US dollar also boosted copper futures, as it made it cheaper
for buyers holding other currencies.
The Wall Street Journal dollar index last slipped 0.
08% to 87.
63
.
In addition, the news that the size of LME copper inventory cancellations in the past two days reached about 18,000 tons, which supported copper prices
.