Copper Rises on Hopes of Strike Settlement

Ahmadzadeh says copper demand should remain strong despite the slowdown in the housing market. He expects China to stop drawing down its strategic reserves and resume buying scrap copper in the open market.

The copper rally translated into gains for stockholders, with shares of copper miners Phelps Dodge(PD Quote - Cramer on PD - Stock Picks) and Southern Copper(PCU Quote - Cramer on PCU - Stock Picks) both rising, up 1.7% and 1.9% respectively.

In the precious-metals market, gold was staging a minor rally ahead of a United Nations deadline demanding that Iran cease its enrichment of uranium.

Investors were clearly pricing in a full rejection by Iran's leader, Mahmoud Ahmadinejad, with prices for Comex December gold contracts closing up $8.10 at $634 an ounce.

Gold is seen as a safe-haven asset and is often bought as a hedge against geopolitical uncertainty, as well as a hedge against inflation.

The gold stocks gaining more than most were Meridian Gold(MDG Quote - Cramer on MDG - Stock Picks), shooting up 8.1%, Agnico-Eagle Mines(AEM Quote - Cramer on AEM - Stock Picks), jumping 6.9%, and Bema Gold(BGO Quote - Cramer on BGO - Stock Picks) rising 5.2%.

Continuing the pattern of mining industry consolidation, Canadian digger Goldcorp(GG Quote - Cramer on GG - Stock Picks) offered to buy Nevada's Glamis Gold(GLG Quote - Cramer on GLG - Stock Picks) for $8.6 billion in stock.

Glamis was rallying 19.8%, while Goldcorp was retreating, down 8.7% recently.

In other precious metals news, October platinum futures were rallying, closing up 80 cents at $1,252 an ounce on the Nymex. Palladium was gaining too, with December contracts closing at $350 an ounce, $1.30 higher.

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