Investing.com - Copper futures edged higher on Tuesday, after the People’s Bank of China injected funds to the financial system for the first time in two weeks and amid speculation the Federal Reserve will maintain its stimulus program well into 2014 to support the U.S. economy.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.282 a pound during European morning trade, up 0.4%.
Copper prices traded in a range between USD3.246 a pound, the daily low and a session high of USD3.284 a pound.
The December contract ended unchanged on Monday to settle at USD3.269 a pound.
Copper prices were likely to find support at USD3.234 a pound, the low from October 25 and resistance at USD3.334 a pound, the high from October 23.
China's central bank pumped CNY13 billion into markets via open market operations earlier in the day, easing fears of a repeat of the liquidity squeeze that gripped markets in June.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, investors looked ahead to the Fed’s upcoming policy-meeting due to begin later Tuesday, amid expectations that the central bank will delay plans to start tapering stimulus until well into next year.
Data released on Monday showed that U.S. pending home sales fell 5.6% in September, down for the fourth consecutive month.
The disappointing data underlined expectations that the Fed will maintain its stimulus program well into 2014 to support the economy.
Later in the day, the U.S. was to produce data on retail sales and producer price inflation, as well as a report on consumer confidence.
Copper traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to reduce its bond-purchasing program.
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 December delivery inched down 0.45% to trade at USD1,346.10 a troy ounce, while silver for December delivery shed 0.6% to trade at USD22.40 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.282 a pound during European morning trade, up 0.4%.
Copper prices traded in a range between USD3.246 a pound, the daily low and a session high of USD3.284 a pound.
The December contract ended unchanged on Monday to settle at USD3.269 a pound.
Copper prices were likely to find support at USD3.234 a pound, the low from October 25 and resistance at USD3.334 a pound, the high from October 23.
China's central bank pumped CNY13 billion into markets via open market operations earlier in the day, easing fears of a repeat of the liquidity squeeze that gripped markets in June.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, investors looked ahead to the Fed’s upcoming policy-meeting due to begin later Tuesday, amid expectations that the central bank will delay plans to start tapering stimulus until well into next year.
Data released on Monday showed that U.S. pending home sales fell 5.6% in September, down for the fourth consecutive month.
The disappointing data underlined expectations that the Fed will maintain its stimulus program well into 2014 to support the economy.
Later in the day, the U.S. was to produce data on retail sales and producer price inflation, as well as a report on consumer confidence.
Copper traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to reduce its bond-purchasing program.
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 December delivery inched down 0.45% to trade at USD1,346.10 a troy ounce, while silver for December delivery shed 0.6% to trade at USD22.40 a troy ounce.