Sept. 16 (Bloomberg) -- Copper climbed by the most in a week, rebounding from a five-week low, as former Treasury Secretary Lawrence Summers withdrew his nomination to lead the Federal Reserve, boosting bets a tapering will be slower.
Copper for delivery in three months on the London Metal Exchange advanced as much as 1.1 percent to $7,120.25 a metric ton, the biggest gain since Sept. 9, and was at $7,064.25 by 2:50 p.m. in Shanghai. The price touched $7,024 on Sept. 13, the lowest intra-day level since Aug. 8.
Summers would tighten Fed policy more than Janet Yellen, who was his main rival to replace Chairman Ben S. Bernanke, according to a Bloomberg Global Poll last week. The central bank may trim Treasury purchases by $10 billion a month at its two- day meeting starting tomorrow, a separate survey showed.
“The metal market was encouraged by Summers’ departure,” said Lin Hui, head of research at Orient Futures Co. in Shanghai. “That gave a strong indication that a possible tapering of quantitative easing would slow with the next Fed leader.”
Copper prices also rose as they climbed above a 60-day moving average at around $7,045 a ton, Lin said. Inventories tracked by the LME fell 3.8 percent last week, the most since September last year.
Metal for delivery in December declined 0.2 percent to close at 51,180 yuan ($8,364) a ton on the Shanghai Futures Exchange. The contract for delivery in December rose 0.3 percent to $3.214 a pound on the Comex in New York.
On the LME, aluminum also increased, while tin and nickel dropped. Zinc and lead were little changed.
--Alfred Cang. Editors: Sungwoo Park, Jake Lloyd-Smith