Possibilities of stimulus propel copper futures higher

Aspirations for monetary easing programs from central banks in the U.S., China and Europe helped drive copper futures to their highest price in more than four weeks on Thursday, according to Reuters.

The industrial metal gained from the prospect of increased demand, which would be prompted by the revival of economic systems.

The use of copper in manufacturing, construction and other industry makes it sensitive to financial developments throughout the world, and even chatter about monetary stimulus prompts the reddish metal's upward climb.

"It's difficult to be really bullish given the macro-economic background, but all that news is in the price and there's every likelihood of a fresh stimulus package in the U.S., plus we're coming into the seasonally strong period for metals demand," trader Steve Hardcastle with Sucden told the news source. "On top of that, we've got bad U.S. figures today and a weaker dollar, which also helps the price."

At 3: 30 p.m. on Thursday, copper futures gained 0.69 percent, a 0.024 cent lift to $3.4845 per pound.

Stimulus speculation soars

Reuters reports the policy-making arm of the U.S. Federal Reserve appears poised to implement a stimulus program sooner rather than later should the correct circumstances ensue, according to minutes of the July 31/August 1 meeting, which were released on Wednesday. The Federal Open Market Committee discussed that it would be more inclined to launch more stimulus if the economy did not show signs of strengthening.

China, the world's largest consumer of copper – which accounts for 40 percent of global demand, boosted the likelihood of more easing after underwhelming manufacturing data was publicized from Wednesday to Thursday, according to the news source. August factory activity dropped to its lowest level in 9 months, raising concerns about a lagging slowdown that has lingered a lot longer than anticipated.

Speculation ensued about the European Central Bank pondering additional acquisitions of bonds as a method of aiming for yield levels, Reuters reports. Spain and Italy, the flashpoints of concern for the voracious appetite of the sovereign debt crisis, are vulnerable as possible victims that are under close watch.

World's largest supplier sees benefits

Gains to copper futures on Thursday coincided with advances to the peso of Chile, which marked three consecutive days of gains, according to Bloomberg.

The monetary unit advanced 0.3 percent on Thursday against the world's reserve currency.

One trader in the Chilean capital noted that they are paying close attention to occurrences with the central bank in the nations that host the globe's largest economies.

"The expectation of QE3 or Treasury buying or more stimulus in China means that commodities have rebounded," trader Cristian Donoso with Banchile Corredores de Bolsa in Santiago told the news source. "It's time to sell dollars."

China is a focal point of attention for Chile and its commerce and trade interests of copper due to the Asian nation's high demand for the industrial metal.

Whitish, yellowish metals track reddish peer

The Wall Street Journal reports gains to copper futures on Thursday are in line with upticks for gold and silver futures.

Those precious metals benefited from speculation about stimulus measures, for which they serve as an investment hedge.

But the whitish metal also fulfills numerous capacities within industry, construction and manufacturing as it is used for batteries, bearings, electronics and catalysts, according to the Silver Institute, a Washington-based advocacy for the volatile metal. Silver also is used for brazing, soldering and within the automotive industry.

At 3:55 p.m. on Thursday, gold futures climbed 1.99 percent, a $32.60 lift to $1,673.10 per troy ounce. At 3:54 p.m., silver futures surged 3.2 percent, a 94.9 cent lift to $30.59 per troy ounce.