Copper ended firm on Tuesday, climbing back toward the two-year highs it hit last week as the weak dollar bolstered risk appetite and positive European manufacturing data brightened global demand prospects. Gains were driven by investors who anticipated further losses in the dollar due to another round of government debt purchases, or quantitative easing, by the US Federal Reserve on Wednesday as it attempts to boost the world's largest economy.
Copper for December delivery on the COMEX metals division of the New York Mercantile Exchange rose 5.40 cents, or 1.4 percent, to finish at $3.8390 per lb, near the upper end of its $3.77 to $3.8410 range. Last week, COMEX December copper touched $3.90 per lb, the highest level for second-position futures contract since July 2008.