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Copper futures lower ahead of day 2 of Bernanke testimony

Published 07/18/2013, 05:17 AM
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Investing.com - Copper futures edged lower to hit a seven-day low on Thursday, after Federal Reserve Chairman Ben Bernanke indicated Wednesday that the bank still expects to start tapering its asset purchase program by the end of the year.

On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.124 a pound during European morning trade, down 0.2% on the day.

New York-traded copper prices fell by as much as 1.5% earlier in the day to hit a session low of USD3.107 a pound, the weakest level since July 10.

In day one of his semi-annual testimony before the Financial Services Committee in Congress on Wednesday, Bernanke said the central bank expects to start tapering bond purchases by the end of the year, but added that there was no “preset course.”

Bernanke said the bank’s bond purchase program could be tapered at a faster pace, slower pace or even temporarily increased depending on economic and financial developments.

The Fed Chairman said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future.

Bernanke will testify before the Senate Banking Committee on Thursday.

The U.S. was to release the weekly government report on initial jobless claims and data on the Philly Fed manufacturing index later in the trading day.

Any improvement in U.S. economic activity could scale back expectations for further easing, boosting the dollar and weighing on copper.

The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.

Elsewhere on the Comex, gold for August delivery eased up 0.1% to trade at USD1,279.55 a troy ounce, while silver for September delivery shed 0.1% to trade at USD19.39 a troy ounce.

Moves in gold and silver this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.

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