Copper climbs after Fed statement

The price of copper rose strongly on Thursday in London following the latest statement from the Federal Open Market Committee, which left interest rates unchanged.

Spot copper closed 1.70% higher at US$5,029/t (US$2.281/lb) on the London Metal Exchange from Wednesday's US$4,945/t (US$2.243/lb), according to Chilean state copper commission Cochilco.

"The fact that the US Federal Reserve has signaled that it will not be raising interest rates quite as sharply this year as previously predicted is also driving metal prices up significantly this morning," said Commerzbank in a note on Thursday.

The German bank added: "Copper has risen above both the US$5,000 per ton mark and the technically important 200-day moving average, and has achieved a 4½- month high of US$5,070."

Also lending support to the red metal was comments made by Chinese Premier Li Keqiang, who ruled out any hard landing of the Asian giant's economy. "We believe this will require further economic stimulus measures to be implemented, which should also contribute to solid demand for metals," Commerzbank said.

Aluminum closed up 0.6% on Thursday at US$1,503.50/t and lead was 2.5% higher at US$1,812/t, while nickel rose 2.2% to US$8,645/t. Zinc was up 3.2% at US$1,794.50/t, tin was 0.7% higher at US$17,025/t and molybdenum was steady at US$12,200/t.

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