Copper prices rise on demand hopes

The price of copper was up Friday on hopes that the US Congress will pass a stimulus package proposed by President Barack Obama, with the expectation that spending coming from that plan will boost demand for the metal.

Additionally, China has begun to spend stimulus money, a move that should increase demand for copper there.

Also helping copper prices rise was the possibility that manufacturing activity is beginning to recover after new data showed that activity increased in both the United States and China in January.

March copper was up 13 cents to $1.63 per pound in afternoon trade in New York, while three-month contracts for copper gained $235 to $3,565 per tonne on the London Metal Exchange.

Among precious metals, silver and platinum made gains on speculation that spending by governments will raise demand, but a rally in global equities markets and the prospect of the passage of Mr. Obama’s stimulus plan in the US limited gains for gold.

April gold added 90 cents to $914 per troy ounce while March silver was up 41 cents to $13.16 per troy ounce and April platinum gained $22.30 to $1,000.20 per troy ounce.