Copper Climbs, Waiting on Federal Reserve Signals

As investors wait for further indications from the Federal Reserve as to if it will be curbing its stimulus plan, copper made some gains in London, climbing by $41.73 to $6,955 a metric ton. Despite a nearly one-month high last week, when the red metal touched on $7,049.25 per metric tonne, the metal is down about 12 percent this year.

“The overly pessimistic market in the past few weeks and months is making copper vulnerable to a short-term recovery,” Eugen Weinberg, head of commodity research at Commerzbank, told Reuters. “Much of the growth fears are already priced in. So I don’t see much potential to the downside. But any price increase is going to be gradual. The Chinese demand situation remains very challenging.”

On the Comex in New York, copper for September delivery increased $0.009 to reach $3.155 a pound.