Copper futures fluctuate with China GDP in focus

Investing.com - Copper prices swung between small gains and losses on Monday, as market players looked ahead to key economic data later in the week which could provide more evidence of a slowdown in China.

On the Comex division of the New York Mercantile Exchange, copper for March delivery dipped 0.3 cents, or 0.11%, to trade at $2.614 a pound during European morning hours. Prices held in a tight range between $2.593 and $2.636.

Trade volumes were expected to remain light on Monday, with U.S. markets closed for a holiday.

On Friday, copper climbed 5.9 cents, or 2.31%, to settle at $2.617 a pound, as investors closed out bets on lower prices. Copper hit $2.423 on January 14, a level not seen since June 2009.

Futures were likely to find support at the $2.540, the low from January 16, and resistance at $2.729, the high from January 13.

Market participants looked ahead to a raft of Chinese economic data due on Tuesday for further indications on the strength of the economy and the future path of monetary policy.

The Asian nation will release data on fourth quarter gross domestic product, as well as reports on industrial production, retail sales and fixed-asset investment for December.

Market analysts expect China's economy to grow 7.2% in the three months ending December 31, down from growth of 7.3% in the preceding quarter.

Recent economic data from the Asian nation has indicated that the recovery remains fragile and may require further monetary stimulus.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption.

Elsewhere, gold futures for February delivery dipped 90 cents, or 0.07%, to trade at $1,276.00 a troy ounce, while silver futures for March delivery dropped 3.0 cents, or 0.17% to trade at $17.72 an ounce.

Meanwhile, the euro was close to recent lows against the dollar and the yen on Monday as investors waited to see if the European Central Bank would embark on an outright quantitative easing program on Thursday.

Last Thursday, the Swiss National Bank abandoned its three-year old 1.20 per euro exchange rate cap in a shock move, signaling that it expects the ECB to act this week.

The move roiled financial markets and saw the Swiss franc strengthen across the board.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.2% to 92.86.