Darren Kugler
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Darren Kugler in Commodities,

Industrial Metals Rise as Dollar Holds Slide on Fed Rate Pledge

Industrial metals rose, led by copper, as the dollar held a three-day decline on signs the U.S. Federal Reserve will hold back increasing interest rates, bolstering demand for commodities priced in the currency.

All metals on the London Metal Exchange advanced, with copper climbing as much as 0.8 percent. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, was little changed after dropping 1.5 percent in the previous three days. Minutes from the Fed’s Sept. 16-17 meeting released yesterday showed policy makers decided to maintain a pledge to keep interest rates low for a “considerable time” amid risks to the U.S. economic outlook.

“Copper’s held up pretty well in the face of everything,” Daniel Hynes, a commodity strategist at Australia and New Zealand Banking Group Ltd., said by phone in Sydney. “Maybe a slightly weakerU.S. dollar might push it a little bit higher from here.”

Copper for delivery in three months rose as much as $49.50 to $6,687 a metric ton on the London Metal Exchange and was trading at $6,676 at 9:59 a.m. in Hong Kong. Prices are down 9.3 percent this year.

In New York, the December contract advanced 0.7 percent to $3.024 a pound, while in Shanghai metal for the same month dropped 0.2 percent to 47,610 yuan ($7,762) a ton.

On the LME, aluminum, nickel, zinc, tin and lead advanced.