Copper rose for a second day, paring a weekly decline, after Federal Reserve Chairman nominee Janet Yellen backed U.S. stimulus measures until the economy improves.
The contract for delivery in three months on the London Metal Exchange rose as much 0.6 percent to $7,035.25 a metric ton and traded at $7,029.25 at 10:17 a.m. in Beijing. The two-day rebound helped trim this week’s loss to 1.9 percent.
Stocks extended gains as Yellen’s testimony signaled she will maintain the strategies of Fed Chairman Ben S. Bernanke, whose term ends on Jan. 31. As vice chairman, Yellen has helped Bernanke craft the most aggressive easing program in the Fed’s 100-year history, including a commitment to buy $85 billion a month in bonds until the outlook for the labor market has “improved substantially.”
“It looks almost certain that the QE won’t be withdrawn until at least June, and that has eased the market’s anxiety,” Zhu Shiwei, analyst at Yongan Futures Co., said from Beijing. “The recent weakening in prices has spurred new demand.”
Copper for delivery in January on the Shanghai Futures Exchange gained 0.6 percent to 50,770 yuan ($8,335) a ton. Futures for delivery in March gained 0.6 percent to $3.1895 a pound on the Comex in New York.
On the LME, lead, zinc and nickel also rose, while tin fell. Aluminum was little changed.
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