Investing.com - Copper futures were higher on Monday, as a broadly weaker U.S. dollar and hopes for improving demand from China supported prices.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.170 a pound during European morning trade, up 1% on the day.
New York-traded copper prices rose by as much as 1.2% earlier in the day to hit a session high of USD3.177 a pound.
A broadly weaker U.S. dollar contributed to gains, as fears of an imminent winding down of the Federal Reserve's monetary easing program abated for now.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.2% to trade at 82.57, the lowest level since July 17.
Fed Chairman Ben Bernanke said last week that the pace of the central bank’s bond purchases are not a “preset course”. The Fed chief reiterated that the central bank will continue to maintain its accommodative monetary policy for the foreseeable future.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
The industrial metal found further support after China’s central bank said on Friday that it was removing the lower limit on interest rates for banks in order to help banks attract more borrowers and spur economic activity.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for August delivery rallied 1.7% to trade at USD1,314.65 a troy ounce, while silver for September delivery surged 2.1% to trade at USD19.86 a troy ounce.
Moves in gold and silver this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.170 a pound during European morning trade, up 1% on the day.
New York-traded copper prices rose by as much as 1.2% earlier in the day to hit a session high of USD3.177 a pound.
A broadly weaker U.S. dollar contributed to gains, as fears of an imminent winding down of the Federal Reserve's monetary easing program abated for now.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.2% to trade at 82.57, the lowest level since July 17.
Fed Chairman Ben Bernanke said last week that the pace of the central bank’s bond purchases are not a “preset course”. The Fed chief reiterated that the central bank will continue to maintain its accommodative monetary policy for the foreseeable future.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
The industrial metal found further support after China’s central bank said on Friday that it was removing the lower limit on interest rates for banks in order to help banks attract more borrowers and spur economic activity.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for August delivery rallied 1.7% to trade at USD1,314.65 a troy ounce, while silver for September delivery surged 2.1% to trade at USD19.86 a troy ounce.
Moves in gold and silver this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.