Forexpros - Copper futures traded at a one-month high during European morning hours on Thursday, as appetite for riskier assets improved amid optimism U.S. lawmakers will reach a deal to avert the looming fiscal cliff crisis before the January 1 deadline. On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.564 a pound during European morning trade, up 0.75% on the day. New York-traded copper prices rose by as much as 0.8% earlier in the day to hit a session high of USD3.565 a pound, the strongest level since November 1. Markets participants continued to monitor developments surrounding the looming “fiscal cliff� in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. House of Representatives Speaker John Boehner said Wednesday that he remained hopeful Republicans could forge an agreement with the White House to avert the budget crisis. President Barack Obama later said he believed a "framework" for an agreement can be reached before Christmas. There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline. The optimistic comments prompted investors to shun safe haven assets, such as the U.S. dollar and flock to riskier assets, like stocks and commodities. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.25% to trade at 80.15. A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies. Elsewhere on the Comex, gold for February delivery added 0.45% to trade at USD1,726.45 a troy ounce, while silver for March delivery rose 0.2% to trade at USD33.84 a troy ounce.

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