Copper erased losses, gaining alongside other commodities including oil and gold, as geopolitical tensions escalated. Aluminum and nickel reached their highest levels since 2008. Three-month copper on the London Metal Exchange rose as much as 0.3 percent to $9,887 a metric ton and traded at $9,885 at 2:28 p.m. in Singapore. The metal earlier fell as much as 0.8 percent after China’s central bank on Feb. 18 announced an increase in reserve requirement ratios for a second time this year after lending surged and inflation accelerated. “While tightening in China remains a big concern, losses are being limited today by gains in other commodities such as oil,” Zhang Hao, an analyst at Hengtai Futures Co., said from Shanghai. Libyan leader Muammar Qaddafi’s son called on protesters in the country to engage in dialogue or face a civil war, while Chinese authorities blocked foreign news reports on protests across the country to stamp out any movement toward pro- democracy revolts. Crude jumped 1.4 percent to $87.38 a barrel, gold increased 0.4 percent and silver rose to a 31-year high. Copper futures in New York gained as much as 0.4 percent to $4.514 a pound and last traded at $4.51, erasing an earlier drop of 0.7 percent. May delivery metal on the Shanghai Futures Exchange climbed for the first time in five days, by as much as 1.2 percent to 74,730 yuan ($11,375) a ton. Copper in London climbed to a record $10,190 a ton on Feb. 15, extending last year’s 30 percent rally, on expectation that demand may outpace supplies as the global economy recovers. The world may be short of 435,000 tons of refined copper this year, according to the International Copper Study Group. China Tightens The People’s Bank of China increased interest rates for the third time in four months on Feb. 8, adding to last year’s policy-tightening measures by the government that included curbing loans for third-home purchases. Xinhua News Agency reported on Feb. 19 that more cities including Shanghai and Guangzhou announced restrictions on home purchases. “The government is serious about keeping inflation in check,” said Zhang Xuechuan, an analyst at Huachuang Securities Co. “The tightening measures look set to continue.” Aluminum in London rose as much as 0.4 percent to $2,578 a ton, the highest level since September 2008, while nickel rose as much as 0.9 percent to $29,400 a ton, the highest price since April 2008. Zinc gained 1.3 percent to $2,586 a ton, lead was little changed at $2,665 a ton, while tin rose 0.2 percent to $32,400 a ton. To contact the reporter on this story: Glenys Sim in Singapore at Gsim4@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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