Copper prices rose in New York and London, paring earlier declines after a report showed U.S. consumer sentiment jumped this month to the most positive since September. The Conference Board’s index surged to 54.9, higher than forecast and the biggest gain since April 2003, the business group said today. Copper prices climbed 4 percent last week on an improving economic outlook. Earlier today, copper had dropped as much as 2.9 percent in New York and 2.8 percent in London. “The main factor for the turnaround was the consumer confidence report,” said Donald Selkin, the chief market strategist at National Securities Corp. in New York. “Copper is very sensitive to economic conditions, so this report was a positive.” Copper futures for July delivery advanced 1.05 cents, or 0.5 percent, to $2.108 a pound at 11:10 a.m. on the Comex division of the New York Mercantile Exchange. Consumer confidence was projected to rise to 42.6, the median estimate of 70 economists surveyed by Bloomberg News. The index averaged 57.95 last year. Earlier, the metal fell as the dollar strengthened and traders speculated that economies may take longer than previously expected to recover, sapping demand. Rising Dollar The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, rose as much as 0.9 percent, reducing the appeal of commodities as a hedge against inflation. Home prices in 20 major U.S. metropolitan areas fell more than forecast in March, threatening to extend the housing slump. Copper tumbled 54 percent in 2008 as the global recession slashed demand and inflation expectations eased. “The market has been faltering as there are more concerns about the economy,” said Patrick Chidley, an analyst at Barnard Jacobs Mellet LLC in Stamford, Connecticut. “The stronger dollar is also certainly a reason for prices to come down.” Before today, copper prices jumped 49 percent this year, buoyed by China’s stockpiling of metal. The Asian country is the world’s biggest metals user. Early today, Reuters reported that China’s State Reserves Bureau sold copper in the past month and may put as much as 50,000 metric tons on the market, citing industry sources that said they were offered some of the metal. Rio Tinto Group, the world’s third-largest mining company, is hoping for a rapid economic recovery in China, which will boost commodity demand, said Sam Walsh, chief executive of the company’s iron ore unit. London Trading On the London Metal Exchange, copper for delivery in three months rose $6, or 0.1 percent, to $4,616 a ton ($2.09 a pound). The price touched a record $8,940 on July 2. Inventories in LME-monitored warehouses dropped 2 percent to 326,575 tons today, a 13th straight drop. Metal booked for delivery out of warehouses, or cancelled warrants, fell 9.9 percent to 47,625 tons, signaling the pace of stockpile declines may ease. Among other metals for delivery in three months, aluminum rose 0.5 percent to $1,450 a ton on the LME. Global aluminum inventories shrank to 2.59 million tons in April, from a revised 2.74 million tons a month earlier, the International Aluminium Institute said. Nickel climbed $331, or 2.6 percent, to $13,121 a ton and tin gained 1.1 percent to $13,800 a ton. Lead slipped 0.3 percent to $1,434 a ton, while zinc declined 0.6 percent to $1,508. LME-monitored lead stocks added 0.8 percent to 75,100 tons and zinc stockpiles gained 1.6 percent to 322,775 tons.

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