Copper Climbs as Fed Stimulus Boosts Demand Prospects
Source: Bloomberg, Agnieszka Troszkiewicz (4/28/11)
"Copper is poised to rise following the Federal Reserve's announcement it will maintain monetary stimulus."
Copper advanced "mostly on higher risk appetite, as witnessed by the friendly equity markets and the pronounced weakness of the U.S. dollar," said Eugen Weinberg, the head of commodity research at Commerzbank AG in Frankfurt.
The Fed will maintain its record monetary stimulus after ending $600 billion of bond purchases on schedule in June, Chairman Ben S. Bernanke said yesterday after policy makers concluded a two-day meeting. The economy is recovering at a "moderate pace," and a pickup in inflation is likely to be temporary, the central bank said.