Copper rose to a record for a second day in London

Copper rose to a record for a second day in London before a U.S. report which may be a sign of growth in the U.S. economy, as the Federal Reserve is prepared to discuss interest rates and bond purchases.

U.S. retail sales in November probably jumped from a fifth consecutive month, economists said before a Commerce Department report today. The dollar fell today on speculation that the Fed may signal that is open to purchases of increasing debt to drive growth.

U.S. fiscal stimulus and "improving economic data are supporting copper, said David Thurtell, analyst at Citigroup Inc. in London.

Copper for delivery in three months rose to $ 37 from the record high of $ 9,262 a metric ton, and was at $ 9,259.75 a tonne at 10:47 am at the London Metal Exchange. Copper for March delivery rose as much as 0.5 percent to $ 4.227 a pound on the Comex in New York, the highest price for a most-active contract since May 2008.

The U.S. report retail sales is due at 1:30 pm London time.

Copper has gained 25 percent this year, as declining stocks reported increased demand. German investor confidence improved for the second consecutive month in December as recovery in Europe's largest economy shows signs of enlargement.

German confidence

The ZEW Center for European Economic Research in Mannheim said its index of investor expectations and analysts, aimed at predicting the course of six months in advance, rose to 4.3 from 1.8 in November. Economists expected a gain of 3.9, according to the median of 36 forecasts in a survey.

LME inventories of copper fell by 30 percent this year, scheduled for the first annual decline since 2004. Rose 450 tonnes to 350,900 tons today, the daily exchange figures showed.

Open interest in the December contract is 15 347 LME copper contracts, each for 25 tons, or 383,675 tonnes in total.

"The futures open interest exceeds the total level of stocks in LME warehouses, and that is to maintain sustained tension," said Robin Bhar, an analyst at Credit Agricole SA unit of investment banking in London.

The U.S. currency fell to 0.4 percent against a basket of currencies. A falling dollar makes metals priced in the currency cheaper in terms of other currencies and spurred demand for commodities as an alternative investment.

Copper "probably going to be $ 5 per pound ($ 11.023 per ton) within a year," said John Stephenson, a fund manager at First Asset Investment Management Inc., in an interview on Television. "There really is no supply from the 'until 2012, 2013, to any appreciable extent."

Outlook Aurubis

Aurubis AG, Europe's largest copper smelter, said the demand for copper will grow "more" next year, supported by global economic growth.

premium immediate delivery of metal LME copper for three months rose 63 percent yesterday to $ 70. Prices on 8 November moved to a backwardation call when near metal operations over the longer-term contracts, which could signal the concern of supply.

The rate of borrowing copper for delivery next day, the spread called tom-next, jumped to a premium of $ 10 today, compared with $ 2 off Friday and the highest since July 2009. An increase in the price usually indicates contraction in supply.

Tin for delivery in three months on the LME rose 0.4 percent to $ 26,250 a tonne. Prices reached a record $ 27,500 on 9 November. The metal has risen 55 percent this year, advances in the bag, after production was halted in Indonesia and the Democratic Republic of Congo.

Aluminium rose 0.8 percent to $ 2,350 a tonne and nickel rose 1.5 percent to $ 24,890 a tonne. Lead gained 0.5 percent to $ 2,451 a tonne and zinc 0.9 percent to $ 2,343.25 a tonne.