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Copper futures edge lower with U.S. debt ceiling vote in focus

Published 01/23/2013, 05:00 AM
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Investing.com - Copper futures were lower in rangebound trade during European morning hours on Wednesday, as market players eyed a vote on a measure to temporarily increase the U.S. debt ceiling later in the trading day.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.700 a pound during European morning trade, down 0.15% on the day.

New York-traded copper prices held in a tight range between USD.3688 a pound, the daily low and a session high of USD3.709 a pound.

Copper traders continued to monitor political developments in the U.S., amid ongoing uncertainty over how the country will tackle the upcoming USD16.4 trillion debt ceiling debate.

Republican leaders in the House of Representatives said they aim to pass on Wednesday a nearly four-month extension of the U.S. debt limit, allowing the government to borrow enough to meet its obligations during that period.

Failing to raise the debt ceiling by the end of February could lead to a first-ever U.S. default that could roil financial markets.

In supply news, mining giant BHP Billiton said earlier that copper production at its Escondida mine in Chile rose 31% from a year earlier to 161,500 tons in the three months ended December 31

Meanwhile, in China, the world’s largest copper consumer, refined copper output jumped 22% in December from a year ago to a record 580,000 tonnes.

Elsewhere on the Comex, gold for February delivery eased down 0.1% to trade at USD1,691.25 a troy ounce, while silver for March delivery added 0.1% to trade at USD32.21 a troy ounce.

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