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Copper fluctuates as investors await Fed, U.S. data

Published 04/30/2014, 04:49 AM
Copper swings between gains and losses as investors await Fed, U.S. data
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Investing.com - Copper prices swung between small gains and losses on Wednesday, as investors nervously awaited the conclusion of the Federal Reserve's policy meeting later in the day as well as the release of key U.S. economic data.

On the Comex division of the New York Mercantile Exchange, copper for July delivery held in a range between $3.063 a pound and $3.079 a pound.

Copper last traded at $3.077 a pound during European morning hours, up 0.14%, or 0.4 cents. Prices fell 0.65%, or 2.0 cents, on Tuesday to settle at $3.073 a pound.

Futures were likely to find support at $3.035 a pound, the low from April 24 and resistance at $3.098 a pound, the high from April 29.

Market players prepared for the outcome of the Fed’s policy meeting later in the day, amid expectations for another $10 billion reduction in the central bank’s now $65-billion-a-month stimulus program.

Key U.S. economic data will also be in focus. The U.S. is to release preliminary data on first quarter GDP, as well as the ADP report on private sector job creation. The U.S. is also to release data on manufacturing activity in the Chicago region.

Market players were also focusing on China’s official manufacturing purchasing managers’ index, due on Thursday, which is expected to rise to 50.5 for April from 50.3 for March.

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 June delivery fell 0.46%, or $6.00, to trade at $1,290.30 a troy ounce, while silver for July delivery dropped 0.97%, or 19.0 cents, to trade at $19.34 an ounce.

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