Investing.com - Copper futures rallied to a more than one-week high on Thursday, as investors cheered better than expected manufacturing data out of China, the world’s largest consumer of the red metal.
On the Comex division of the New York Mercantile Exchange, copper for September delivery rose to a session high of $3.253 a pound, the most since July 16, before trimming gains to last trade at $3.248 during European morning hours, up 1.27%, or 4.1 cents.
Copper ended Wednesday’s session down 0.03%, or 0.1 cents, to settle at $3.207. Futures were likely to find support at $3.192, the low from July 23 and resistance at $3.255 a pound, the high from July 16.
Data released earlier showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, rose to an 18-month high of 52.0 in July from a final reading of 50.7 in June. Analysts had expected the index to rise to 51.0 this month.
Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for August delivery shed 0.43%, or $5.60, to trade at $1,299.10 a troy ounce, while silver for September delivery dipped 0.41%, or 8.7 cents, to trade at $20.90 an ounce.
Later in the day, the U.S. was to produce data on unemployment claims, manufacturing activity and new home sales, amid ongoing speculation over when the Federal Reserve may start to raise interest rates.