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Copper futures edge higher ahead of U.S. ADP, new home sales data

Published 12/04/2013, 05:21 AM
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Investing.com - Copper futures edged higher on Wednesday, as investors looked ahead to key U.S. economic data later in the day to further gauge the strength of the economy and the need for stimulus.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.178 a pound during European morning trade, up 0.3%.

Comex copper prices traded in a range between USD3.159 a pound, the daily low and a session high of USD3.188 a pound.

The March contract settled 0.47% lower on Tuesday to end at USD3.167 a pound.

Copper prices were likely to find support at USD3.158 a pound, the low from December 4 and resistance at USD3.215 a pound, the high from December 2.

Later in the day, the U.S. was to release the ADP report on private sector job creation, as well as data on new home sales and the trade balance. In addition, the Institute of Supply Management was to release its services PMI.

The U.S. is also set to release data on third quarter gross domestic product on Thursday, while November’s highly-anticipated nonfarm payrolls report is scheduled for Friday.

The Federal Reserve, which holds its next meeting on December 17-18, has said the timing of its tapering depends on the health of the labor and housing markets.

Prices of the industrial metal are down approximately 14% this year on concerns the Fed would begin cutting back its easy-money policy by trimming its USD85-billion monthly bond purchasing program.

The U.S. central bank’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 February delivery fell 0.65% to trade at USD1,212.90 a troy ounce, while silver for March delivery shed 0.3% to trade at USD19.01 a troy ounce.

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