Copper surged to a nine-month high on optimism that the gains in the equity markets signal a recovery in global growth, which will increase the demand for the industrial metal.
Copper has gained more than 74% this year as demand rose in China, the world’s largest buyer, and the US housing market stabilized. The gains in the equity markets are seen as a sign that the global economy is on the road to recovery.
Copper futures for September delivery jumped 4.6 cents, or 1.9%, to $2.469 a pound on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $2.4895, the highest for a most-active contract since mid-October last year.
Copper rose 9.6 percent last week, the biggest gain since early March, on signs of improvement in the US housing market. Developers are the largest copper consumers, using pipes and wires made from the metal.
Work began on new US homes at an annual rate of 582,000 units in June, up 3.6% from May, and the fastest pace since November, the Commerce Department reported last week.
On the London Metal Exchange, copper for delivery in three months jumped $40, or 0.8%, to $5,350 a metric tonne ($2.43 a pound).