Copper rose to a one-month high as the dollar weakened and upbeat US corporate and economic numbers spurred investor confidence that the global economy had passed the worst of its downturn.
Copper for September delivery on the New York Mercantile Exchange’s COMEX division gained 9.30 cents, or 4%, to settle at $2.3920 a lb, after trading in a range between $2.2955 and $2.4055, its highest level since June 12.
London Metal Exchange (LME) copper for three-month delivery settled up $218 at $5,263 a tonne.
Copper’s gains tracked a broader rally in global equity markets after positive quarterly results from Goldman Sachs and Intel Corp on Tuesday reassured investors on the outlook for improvement in the world economy.
The strong corporate earnings and US data weighed heavily on the dollar, making dollar-priced metals cheaper for non-US investors.
Copper stocks in LME warehouses rose 4,200 tonnes to 261,100 tonnes, but way below 500,000 tonnes in late February.
Copper has gained around 65% this year, mostly due to Chinese buying, as the world’s biggest copper consumer imported 1.8 million tonnes of refined copper in the first half.