Sept. 19 (Bloomberg) -- Copper futures rose to a three-week high in New York after the Federal Reserve unexpectedly maintained monetary stimulus in the U.S., the second-biggest consumer of the metal. Tin rose to a six-month high in London.
Policy makers want to see more evidence that improvement in the U.S. economy will be sustained before adjusting the Fed’s $85 billion in monthly debt purchases, the central bank said yesterday. A gauge of global equities jumped to a five-year high.
“Prices took off on the Fed news,” Frank Cholly, a senior commodity broker at RJO Futures in Chicago, said in a telephone interview. “The Fed is saying it can keep rates low until it sees more evidence of strength in the economy, and commodity and equity markets like the easy money policy.”
Copper futures for December delivery jumped 2.1 percent to settle at $3.347 a pound at 1:20 p.m. on the Comex in New York. Earlier, the price reached $3.3565, the highest for a most- active contract since Aug. 27. The metal has fallen 8.4 percent this year.
Inventories monitored by the London Metal Exchange fell for the 11th straight session. They have dropped 5.8 percent to 568,575 metric tons since Sept. 4.
On the LME, copper for delivery in three months rose 2.1 percent to $7,335 a ton ($3.33 a pound).
Tin advanced as much as 1.5 percent to $23,350 a ton, the highest since March 19. Stockpiles have dropped 10 percent this month.
Aluminum, lead, nickel and zinc climbed.
Markets in China, the biggest copper consumer, are closed today and tomorrow for national holidays.
--Editors: Patrick McKiernan, Thomas Galatola