Copper climbed to the highest price in four months on speculation that demand will rise as governments worldwide pledged to boost growth.
Federal Reserve Chairman Ben S. Bernanke said on Aug. 27 the U.S. central bank “will do all that it can” to ensure a continuation of the economic recovery. The Bank of Japan expanded credit today in a bid to accelerate expansion and said it is ready to take more action if necessary. Copper advanced 2.2 percent last week, the biggest such gain in a month.
“We’re seeing a continuation of last week’s rally,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. Demand for industrial metals including copper will rise as governments take steps to stimulate growth, he said.
Copper futures for December delivery rose 4.5 cents, or 1.3 percent, to settle at $3.4295 a pound at 1:16 p.m. on the Comex in New York. Earlier, the price reached $3.46, the highest level for a most-active contract since April 27.
The metal may reach $3.60 by the end of September, McGhee said. Copper is used in pipes and electrical wiring.
The London Metal Exchange is closed today for a holiday.