Copper Lifted by Favorable News from USA
Copper gained as positive macroeconomic data from the United States and comments of the Federal Reserve Chairman Ben Bernanke caused speculations that the growing US economy will lead to increasing demand for the industrial metal.
The Richmond Manufacturing Index climbed from -12 in January to 6 in February, showing that the sector returned to growth. New home sales climbed from 378,000 in December to the seasonally adjusted annual rate of 437,000 in January, much more than was predicted by analysts. Other indicators also showed growth of the biggest world economy, hinting at rising consumption of the metal used in manufacturing and construction.
Bernanke defended the monetary stimulus during his congressional testimony yesterday. He said:
We do not see the potential costs of the increased
risk-takingin some financial markets as outweighing the benefits of promoting a stronger economic recovery.
Such words suggested that the Chairman is not going to drop stimulus, easing concerns caused by the last week’s minutes of the Fed policy meeting.
May futures for delivery of copper climbed $0.005 (0.14 percent) to $3.5885 per pound as of 3:21 GMT on COMEX today. Contract for delivery of the metal in three months advanced $22.50 (0.29 percent) to $7,858.50 per metric ton on LME yesterday.
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