Copper Futures Gain on Bets Dollar to Resume Slump, Boosting Metal Demand

Oct 23 （Bloomberg）--  Copper prices rose on speculation the dollar’s rally will stall, boosting demand for metals as alternative investments.

The greenback headed for a weekly gain against a basket of major currencies, snapping a five-week slump. The dollar had declined on bets the Federal Reserve will boost its monetary stimulus to bolster the economy. This week, copper dropped 1.1 percent, ending a five-week rally.

"Near-term commodity price action seem to be dominated by dollar moves,” said Daniel Major, an analyst at RBS Global Banking & Markets in London.

Copper futures for December delivery rose 1.55 cents, or 0.4 percent, to settle at $3.797 a pound at 1:22 p.m. on the Comex. Earlier, the price dropped as much as 0.8 percent as the dollar fluctuated. The metal gained 13 percent in the previous five weeks.

On the London Metal Exchange, copper for delivery in three months rose $27, or 0.3 percent, to $8,334 a metric ton ($3.78 a pound).

The price has climbed 26 percent in the past year.

Aluminum, lead and zinc also gained. Nickel and tin fell.