Investing.com - Copper futures rallied to hit a three-week high on Thursday, after comments by Federal Reserve Chairman Ben Bernanke helped ease concerns over the possibility the central bank will begin to taper its bond-buying program before the end of the year.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.184 a pound during European morning trade, up 3% on the day.
New York-traded copper prices rose by as much as 3.4% earlier in the session to hit a daily high of USD3.201 a pound, the strongest level since June 18.
At an appearance in Boston late Wednesday, Fed Chief Bernanke said that “highly accommodative” monetary policy will be needed for the “foreseeable future,” citing low levels of inflation and the high unemployment rate.
The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.
Around half of Fed policymakers believe the bank should start to scale back bond purchases by the end of the year, while others believe the labor market still remains too weak.
The U.S. dollar came under broad selling pressure as expectations grew the Federal Reserve would keep its loose monetary policy in place.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 1.3% to trade at 83.13, the lowest level since June 25.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.
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 red metal found additional support amid growing expectations the People’s Bank of China will introduce fresh easing measures to boost growth following the release of dismal trade data on Wednesday.
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 jumped 2.8% to trade at USD1,282635 a troy ounce, while silver for September delivery rallied 4.1% to trade at USD19.94 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.184 a pound during European morning trade, up 3% on the day.
New York-traded copper prices rose by as much as 3.4% earlier in the session to hit a daily high of USD3.201 a pound, the strongest level since June 18.
At an appearance in Boston late Wednesday, Fed Chief Bernanke said that “highly accommodative” monetary policy will be needed for the “foreseeable future,” citing low levels of inflation and the high unemployment rate.
The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.
Around half of Fed policymakers believe the bank should start to scale back bond purchases by the end of the year, while others believe the labor market still remains too weak.
The U.S. dollar came under broad selling pressure as expectations grew the Federal Reserve would keep its loose monetary policy in place.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 1.3% to trade at 83.13, the lowest level since June 25.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.
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 red metal found additional support amid growing expectations the People’s Bank of China will introduce fresh easing measures to boost growth following the release of dismal trade data on Wednesday.
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 jumped 2.8% to trade at USD1,282635 a troy ounce, while silver for September delivery rallied 4.1% to trade at USD19.94 a troy ounce.