Copper advanced for the first time in three days in London after Federal Reserve Chairman Ben S. Bernanke said the benchmark interest rate will remain low long after policy makers reduce bond purchases.
Bernanke said a “preponderance of data” would be needed to start removing stimulus, after his nominated successor, Fed Vice-Chairman Janet Yellen, signaled last week that the U.S. economy isn’t strong enough to warrant cuts to the bond-buying program. The Federal Open Market Committee publishes minutes of its October meeting today. Gains were limited after the dollar rebounded against the euro, reducing the appeal of greenback-denominated commodities.
Copper was “supported by Bernanke’s comments indicating that the Fed will maintain the easing monetary policy in the U.S. for as long as needed,” Marex Spectron Group said in a report today. “In focus will be the FOMC minutes.”
Copper for delivery in three months on the London Metal Exchange rose 0.1 percent to $6,974 a metric ton by 9:36 a.m. The metal, which touched $6,910 yesterday, the lowest level since Aug. 7, declined 12 percent this year. Futures for delivery in March gained 0.1 percent to $3.167 a pound on the Comex in New York.
Copper stockpiles monitored by the LME fell 0.4 percent to 445,700 tons, the lowest since Feb. 27, exchange data showed today. Copper canceled warrants, or metal earmarked for delivery, rose 0.7 percent to 278,275 tons on bookings in Antwerp, Belgium and the Dutch city of Vlissingen. About 62 percent of global inventories of the metal are awaiting delivery.
On the LME, aluminum, lead and tin also climbed. Nickel and zinc fell.
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