Copper prices post strong gains

Copper prices posted their biggest one-day gain in nearly four weeks Tuesday after the dollar weakened and China announced supportive measures for its banking sector. The most actively traded contract, for December delivery, surged 8.05 cents, or 2.6 per cent, to $3.1660 a pound on the Comex division of the New York Mercantile Exchange. This was the highest settlement since September 8, and the largest one-day gain since August 20. Copper prices shot higher while the dollar retreated after Jon Hilsenrath, The Wall Street Journal's chief economics correspondent, said the Federal Reserve is unlikely to remove dovish language from its policy statement, due Wednesday. Copper hit $3.2120 a pound, its highest level since August 27, as the ICE Dollar Index fell 0.4 per cent to 83.95 in response to the news. The index tracks the dollar against a basket of currencies. Copper is priced in dollars and tends to move in the opposite direction to the currency, according to skynews.com