Copper steadied below two-year highs by Monday's close, bucking the negative impact of a stronger dollar, as investors bought the industrial metal as an inflation hedge and amid concerns over supply tightness. At the COMEX metals division of the New York Mercantile Exchange, copper for December delivery rose 0.80 cent to settle at $3.9565 per lb, away from Friday's 27-month peak at $3.9955.
With spill-over support from the precious metals complex, copper held firm in the face of a stronger dollar, as budget problems in Ireland weighed against the euro. "I think the biggest factor here is that investors pretty much have made up their minds that they're going to buy commodities regardless of what the dollar is doing in the short term," said Michael Gross, futures analyst with Optionsellers.com in Tampa, Florida.