Investing.com - Copper futures swung between modest gains and losses during European morning hours on Wednesday, after Federal Reserve Chairman Ben Bernanke refrained from indicating if the U.S. central bank is considering near-term monetary stimulus measures.
Prices were supported amid growing expectations policy makers in China will increase efforts to boost growth in the world’s largest copper.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.458 a pound during European morning trade, easing up 0.05%.
The September contract traded in between a tight range of USD3.483 a pound, the daily high and a session low of USD3.451 a pound.
Hopes for additional stimulus measures from China continued to support copper prices.
There are expectations in the market that China will cut its banks’ reserve requirement ratio to boost lending and support growth in the world’s largest copper consumer.
Government data released last week showed that China’s second quarter economic growth slowed to a three-year low of 7.6%, compared to growth of 8.1% in the first quarter.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper’s gains were capped after Fed Chair Ben Bernanke delivered a negative assessment of the outlook for the U.S. economy.
In testimony on the economy and monetary policy to the Senate Banking Committee on Tuesday, Bernanke said growth had lost momentum in the first half of the year and added that progress on cutting the U.S. unemployment rate was “frustratingly” slow.
However, he refrained from indicating whether the Fed would embark on a third round of quantitative easing to stimulate the economy, but reiterated that the central bank was prepared to take further action to support the economic recovery if necessary.
Market participants now looked ahead to Bernanke's return to Capitol Hill later Wednesday to testify to the House Financial Services Committee.
Worries about the U.S. economy have been dominating market sentiment in recent weeks, alongside the ongoing debt crisis in the euro zone and China's cooling growth.
Elsewhere on the Comex, gold for August delivery shed 0.5% to trade at USD1,581.05 a troy ounce, while silver for September delivery fell 0.55% to trade at USD27.15 a troy ounce.
Prices were supported amid growing expectations policy makers in China will increase efforts to boost growth in the world’s largest copper.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.458 a pound during European morning trade, easing up 0.05%.
The September contract traded in between a tight range of USD3.483 a pound, the daily high and a session low of USD3.451 a pound.
Hopes for additional stimulus measures from China continued to support copper prices.
There are expectations in the market that China will cut its banks’ reserve requirement ratio to boost lending and support growth in the world’s largest copper consumer.
Government data released last week showed that China’s second quarter economic growth slowed to a three-year low of 7.6%, compared to growth of 8.1% in the first quarter.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper’s gains were capped after Fed Chair Ben Bernanke delivered a negative assessment of the outlook for the U.S. economy.
In testimony on the economy and monetary policy to the Senate Banking Committee on Tuesday, Bernanke said growth had lost momentum in the first half of the year and added that progress on cutting the U.S. unemployment rate was “frustratingly” slow.
However, he refrained from indicating whether the Fed would embark on a third round of quantitative easing to stimulate the economy, but reiterated that the central bank was prepared to take further action to support the economic recovery if necessary.
Market participants now looked ahead to Bernanke's return to Capitol Hill later Wednesday to testify to the House Financial Services Committee.
Worries about the U.S. economy have been dominating market sentiment in recent weeks, alongside the ongoing debt crisis in the euro zone and China's cooling growth.
Elsewhere on the Comex, gold for August delivery shed 0.5% to trade at USD1,581.05 a troy ounce, while silver for September delivery fell 0.55% to trade at USD27.15 a troy ounce.