Shanghai copper limit up, chasing LME gains

Shanghai copper rose by its 5 percent daily limit yesterday, chasing sharp gains in London fanned by Fed chief Ben Bernanke's comments on economic recovery.

London Metal Exchange copper for delivery in three months rose almost seven percent since Shanghai closed on Friday, lifted by Bernanke, who gave his clearest signal yet that a recovery is at hand, while the biggest rise in sales of previously owned US homes in July in nearly two years added to the bullish sentiment.

"Copper is a vampire metal - some weak data puts a stake through its heart, but a sniff of a positive number and it's back flapping its wings," a dealer in Singapore said.