Copper rose for a third day as the dollar fell against most major peers and as China moved toward market-set lending rates. Aluminum, lead, nickel, tin and zinc also gained.
Copper for delivery in three months on the London Metal Exchange advanced as much as 1 percent to $6,985 a metric ton and was at $6,971.25 at 12:56 p.m. in Shanghai. Metal for delivery in November on the Shanghai Futures Exchange rose 1.3 percent to 50,170 yuan ($8,175) a ton.
The U.S. currency dropped against most of its major peers today as Pacific Investment Management Co.’s Bill Gross said he expects the Federal Reserve won’t tighten policy until 2016 at the earliest. The People’s Bank of China ended a floor on borrowing costs previously set at 30 percent below the benchmark as the government tries to boost growth in the long run by establishing a more efficient financial system.
“The weakness in the dollar, coupled with growth-supportive measures in China, are lending support to copper,” said Wang Jun, an analyst at Beijing Cifco Futures Co.
Copper for delivery in September on the Comex rose 0.7 percent to $3.1625 a pound. Net-short positions, or wagers on falling Comex prices, held by funds fell to 15,673 futures and options as of July 16 from 26,284 a week earlier, according to the U.S. Commodity Futures Trading Commission.