The most-traded November copper contract on the Shanghai Futures Exchange climbed 0.60 percent to close at 50,250 yuan ($8,200) a tonne on Tuesday after weaker-than-expected US retail sales backed the view the US Federal Reserve will hold off on reducing monetary support anytime soon.
Markets are waiting for Fed Chairman Ben Bernanke to testify to Congress this week for further signals on when the US central bank plans to scale back its huge bond-buying programme, which has been bolstering demand for commodities. "At this stage it looks like we're still seeing a bit of an improvement in the US economy so the chances are that tapering will begin before the end of the year," said economist Alexandra Knight at National Australia Bank in Melbourne. "Potentially that could restrict liquidity and have an impact on the real economy. Initially it could be perceived negatively in the metals markets and dampen prices."
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