Aluminum scales new peak

Aluminum jumped to its highest level in more than a year in Shanghai on signs of recovering demand in Asia, including China and Japan.

Futures in Shanghai have gained 34 percent and aluminum in London has advanced 29 percent this year as the Dollar Index declined 6.4 percent against six major currencies. The currency index fell for the first time in five days, boosting the appeal of commodities as a store of value.

"Compared with other markets, such as equities and oil, base metals looked strong because of the dollar's weakness," Kazuhiko Saito, chief analyst at Tokyo-based commodity broker Fujitomi Co, said yesterday. "We've seen a continued influx of funds in the metals market."