Copper rose for the second time in three sessions as reports showed the housing market is mending in the U.S., the world’s top metals consumer after China.

Copper surged the most in two months after U.S. payrolls rose more than forecast and the jobless rate unexpectedly dropped to a three-year low, bolstering prospects for the economy and metal demand. 

Copper for March delivery rose 2.9 percent to settle at $3.649 a pound at 1:25 p.m. on the Comex in New York, the biggest gain for a most-active contract since Nov. 30. Earlier, the metal reached $3.671, the highest since Oct. 31. 

Copper traders are bullish for the first time in six weeks on signs that demand is still expanding as global inventories decline to an 11-month low and central banks cut funding costs to shore up growth. 

Copper futures rose to their highest level in more than two months as a pair of better-than-expected readings on the U.S. labor market lifted the demand outlook for the industrial metal.

Copper’s worst start in a decade may extend into this quarter as stockpiles expand, Chinese imports plunge and Japan reels from its nuclear disaster, before rebounding to a record when shortages take hold.

Copper, corn and rubber may tumble in the next six months, while gold climbs to a record $1,500 an ounce as turmoil in the Middle East boosts oil, fuels inflation and weakens Chinese raw-material demand, according to UBS AG.

Copper demand will outstrip supply for the next two years as the economy recovers, China sustains consumption and mine output drops, Japan's top producer said.