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Copper climbs to 4-week high ahead of U.S. growth data, Fed

Published 01/30/2013, 04:45 AM
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Investing.com - Copper futures rallied to a four-week high on Wednesday, as appetite for riskier assets strengthened ahead of the outcome of the Federal Reserve’s policy meeting and U.S. data on economic growth later in the trading day.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.726 a pound during European morning trade, up 0.9% on the day.

New York-traded copper prices rose by as much as 1% earlier in the day to hit a session high of USD3.728 a pound, the strongest level since January 3.

Market participants looked ahead to preliminary data on U.S. fourth quarter economic growth later in the day, as markets attempt to gauge the strength of the U.S. economic recovery.

The U.S. was also to release data on January’s ADP nonfarm payrolls, ahead of Friday’s government data on nonfarm payrolls.

The Federal Reserve’s policy-setting meeting on Wednesday will also be in focus, as markets search for clues over the future of the central bank’s ultra-loose monetary policy.

Elsewhere, China will release its official manufacturing data for January at the end of the week, providing investors with another chance to see whether the recovery in the world’s second largest economy remains on track.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Also on the Comex, gold for April delivery rose 0.25% to trade at USD1,666.65 a troy ounce, while silver for March delivery climbed 0.75% to trade at USD31.42 a troy ounce.

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