Fed Chairman's comments push up red metal prices

Weak dollar also aids in prices moving up Copper prices ended higher on Monday, 26 March 2012 at Comex. Copper started the new week on solid footing on Monday, rallying by its most in more than two weeks as the dollar weakened after remarks from Federal Reserve Chairman Ben Bernanke reaffirmed the U.S. central bank's accommodative monetary stance. His comments helped to ignite a risk-on rally across the broader market, sending industrial metals, and U.S. equities all higher on the hopes for further monetary easing from the Fed. Copper for May delivery ended higher by 8 cents (2.1%) at $3.89 a pound at Comex on Monday. It fluctuated between $3.7950 and $3.8940 throughout the day. For February 2012, copper had gained 2.2%. Red metal prices for three-month-delivery at LME rose $153 (1.8) to $8,533 a metric ton on Monday. Copper has gained about 10% this year, spurred by improved U.S economic data, ultra-loose monetary policy in the western world and moves to stem Europe's debt crisis. On Monday, commodities and equities rose following Bernanke's speech to an economic group. Ahead of the opening bell, Bernanke said it's not yet certain that the recent pace of improvement in the nation's labor market will be sustained. In a speech to business economists, Bernanke said gains in the labor market since last fall could be due to the reversing of large layoffs from earlier in the recession, and that faster economic growth may be the key to further improvements. The Fed chief also said the U.S. economy still could sputter and needs to show continued growth. He also hinted that accommodative Fed monetary policy is still needed to keep the U.S. economic wheels greased. This led to speculation of a third round of quantitative easing of U.S. monetary policy. In the currency market on Monday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies fell by almost 0.45%. Among economic data expected for the day, The National Association of Realtors in US reported on Monday, 26 March 2012 that pending home sales dipped slightly in February to 96.5% last month from 97.0% in January, although it's still 9.2 percentage points above its year-ago level. By region, pending home sales rose 6.5%% in the Midwest, but dropped 3.0% in the South, 2.6% in the West and 0.6% in the Northeast. LME copper stocks also continued to lend support. Latest data showed stocks down 1,175 tonnes at 255,175 tonnes, their lowest since November 2008 and equivalent to just 4.5 days of global demand. For the year 2011, copper shed 23% following a 30% increase in 2010 and a 140% jump in 2009, boosted by surging demand from China's manufacturers. China accounts for 40% of the world's refined copper consumption. Among other traded metals at LME on Monday, lead in London rose 0.2% at $2,000 a ton and nickel closed lower by 0.2% at $18,145 a ton. Aluminum closed higher by 0.5% at $2,185 a ton, and zinc closed higher by 0.7% at $2,019 a ton. At the MCX, copper prices for April delivery ended higher by Rs 7.95 (1.83%) at Rs 440.1/Kg. Prices rose to a high of Rs 440.4/Kg and fell to a low of Rs 432.4/Kg.