Metal prices surge on Fed comments

Chinese commodity futures jumped Monday after US Federal Reserve Chairman Ben Bernanke sparked hopes for a new round of monetary stimulus.

The most traded copper contract on the Shanghai Futures Exchange (SHFE) rose 1.37 percent to close at 56,180 yuan ($8,859.16) per ton, its biggest gain since June 29. The December contract opened on par with Friday's closing price and climbed throughout the session.

Meanwhile Monday, the three-month copper contract on the London Metal Exchange (LME) was trading 0.9 percent higher at $7,660 per ton when the Chinese mainland markets closed.

The most traded SHFE gold contract added 1.84 percent to close at 349.71 yuan per gram in anticipation on a new round of stimulus in both the US and elsewhere.

Bernanke said Friday that grave concerns still surrounded the US job market but the Fed would ease policy as necessary to promote economic growth and reduce unemployment.

US monetary stimulus typically reduces the value of the US dollar, which raises demand for gold and other precious metals because of their value as inflation hedges.

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