(Bloomberg) -- Copper prices advanced the most in six weeks in New York on signs the U.S. economy will see a strong rebound.
A better-than-expected U.S. jobs report on Friday fueled optimism that the world's largest economy will recover from the pandemic faster than other countries. More vaccinations and fewer business restrictions are supercharging the labor market, with U.S. employers adding the most jobs in seven months in March.
“The jobs report on Friday is certainly a big thing” for copper's increase, said Peter Thomas, senior vice president at Zaner Group in Chicago. “A lot of copper will be needed” for President Joe Biden's proposed $2.25 trillion infrastructure plan, which includes measures to boost electric cars that use more of the metal than internal-combustion vehicles.
Debate is in full swing over Biden's spending proposal, with administration officials and Senate Republicans laying out their positions on Sunday news programs. While Democrats want to go bigger, Republicans may be ready to support infrastructure spending if it's scaled back by more than two-thirds.
A weaker dollar is also boosting the industrial metal, as it makes copper more appealing to investors holding other currencies. The Bloomberg Dollar Spot Index fell as much as 0.4%.
Copper for May delivery on the Comex rose 3.7% to settle at $4.1375 a pound at 1:01 p.m., the biggest gain since Feb. 19. The London Metal Exchange is closed for the Easter Monday holiday.
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