SF: Copper Rises to 27-Month High on Bets Fed Will Sustain Growth
Oct. 11 (Bloomberg) -- Copper prices rose to a 27-month high on bets that the Federal Reserve will act to sustain the economic recovery and boost demand for commodities.
Stocks rose around the world on speculation that the Fed this week may signal their willingness to buy more government debt. The Reuters/Jefferies CRB Index of 19 raw materials rose to the highest level in two years. Before today, copper gained 31 percent since July 1 as the dollar slumped and inventories dropped.
"Prices are up on economic optimism," said Adam Klopfenstein, a senior market strategist at Lind-Waldock, a broker in Chicago. "Copper is looking beautiful to the upside."
Copper futures for delivery in December rose 0.85 cent, or 0.2 percent, to $3.783 a pound at 10:31 a.m. on the Comex in New York. Earlier, prices touched $3.82, the highest level since July 8, 2008.
The metal may climb to $3.90 by the end of the week, Klopfenstein said.
Hedge funds and other large speculators were the most bullish on copper since the end of January, U.S. Commodity Futures Trading Commission data showed.
Copper for delivery in three months was unchanged at $8,310 a metric ton ($3.77 a pound) on the London Metal Exchange.
Lead, nickel and zinc rose on the LME. Aluminum and tin fell.
