Copper Rises as Near-Zero U.S. Interest Rates MayCopper rose for a second day inLondon on speculation U.S. interest rates near zero will buoydemand for industrial metals.
The Federal Reserve kept its benchmark rate close to zeroyesterday even after the biggest jump in U.S. new-home salessince 1992. The Fed maintained a pledge to hold borrowing costs“exceptionally low” for an “extended period.” Copper hasdeclined 1.7 percent this year on speculation higher rates wouldstall growth in the world’s largest economy.
“The worry had been that growth in the U.S. would lead toa move to higher interest rates by the Fed,” said Daniel Brebner, an analyst at Deutsche Bank AG in London. “Thatopinion seems to be changing modestly with the Fed comments.”
Copper for delivery in three months climbed $142, or 1.5percent, to $9,472 a metric ton by 10:15 a.m. on the LondonMetal Exchange after rising 0.9 percent yesterday. Copper forMarch delivery advanced 1.1 percent to $4.313 a pound on theComex in New York.
More here
https://www.bloomberg.com/news/2011-01-27/copper-rises-for-second-day-as-near-zero-interest-rates-may-stoke-demand.html