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Copper futures fluctuate after China trade data

Published 12/09/2013, 05:33 AM
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Investing.com - Copper futures swung between small gains and losses on Monday, after data showed copper imports from top consumer China declined last month.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.248 a pound during European morning trade, little changed on the day. Comex copper prices traded in a range between USD3.231 a pound, the daily low and a session high of USD3.254 a pound.

The March contract settled 0.59% higher on Friday to end at USD3.248 a pound.

Copper prices were likely to find support at USD3.217 a pound, the low from December 6 and resistance at USD3.260 a pound, the high from December 6.

According to China's General Administration of Customs, inbound copper shipments totaled 435,613 metric tons in November, down 4.8% from October.

Copper traders now looked ahead to a raft of Chinese economic data later in the week, including reports on industrial production, fixed asset investment and retail sales.

Data released earlier showed that consumer price inflation in China rose 3% in November, in line with expectations and slowing from 3.2% in October.

The inflation report came one day after data showed that China’s trade surplus widened to USD33.8 billion last month from a surplus of USD31.1 billion in October, compared to estimates for a surplus of USD21.7 billion.  

Chinese exports climbed 12.7% from a year earlier, beating expectations for a 7.1% increase and following a 5.6% gain in October. Imports rose 5.3%, compared to forecasts for a 7.2% increase.

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

Elsewhere on the Comex, gold for February delivery fell 0.1% to trade at USD1,228.20 a troy ounce, while silver for March delivery was flat to trade at USD19.52 a troy ounce.

Traders looked ahead to speeches from a number of Federal Reserve officials later in the day for further indications on the future course of U.S. monetary policy.

St. Louis Fed President James Bullard will speak on monetary policy in St. Louis at 6:05 p.m. Eastern, while Dallas Fed President Richard Fisher will speak on the economic outlook in Chicago at 7:15 p.m.

Data released Friday showed that the U.S. economy added 203,000 jobs in November, above expectations for jobs growth of 180,000. The unemployment rate fell to a five-year low of 7.0% from 7.3% in October.

The robust data raised the possibility that the Fed may start to scale back its USD85 billion-a-month asset purchase program as soon as its next monthly meeting on December 17 - 18.

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