Copper Gains for Second Day in New York as Crude Oil Advances

By Millie Munshi

Sept. 4 (Bloomberg) -- Copper rose for a second day in New York as a gain in energy costs renewed demand for commodities as a hedge against inflation.

Crude oil rallied as much as 1.1 percent today, the first advance in five days, on concern Hurricane Ike will disrupt supplies. The Reuters/Jefferies CRB Index of 19 commodities has gained 21 percent in the past year, led by oil prices. Copper rose 8.9 percent this year before today.

``Copper is trying to stabilize today,'' said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. ``With crude coming back up, it's going to give the metals some support.''

Copper futures for December delivery gained 1.45 cents, or 0.4 percent, to $3.3265 a pound at 9:06 a.m. on the Comex division of the New York Mercantile Exchange.

Still, slowing global growth has traders concerned that demand for the metal will decline, limiting price gains, McGhee said.

On the London Metal Exchange, copper for delivery in three months rose $40, or 0.5 percent, to $7,390 a metric ton ($3.35 a pound). Before today, the price gained 10 percent this year.

To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net