London copper, often viewed as a gauge of global economic health, rose on Monday as a jump in oil prices prompted investors’ quest for a hedge against stubborn inflation, though a firmer dollar capped gains in the greenback-priced red metal.
Three-month copper on the London Metal Exchange (LME) was up 0.5 percent at $9,909 a ton, while the most-traded March copper contract on the Shanghai Futures Exchange eased 1.6 percent to 71,330 yuan ($11,217.88) a ton.
Oil prices hit their highest level in more than seven years on fears that a possible invasion of Ukraine by Russia could trigger US and European sanctions that would disrupt exports from the world’s top producer in an already tight market.
Investors often buy commodities as a hedge against expectations of broadening inflationary risks.
