Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Copper futures inch higher amid Fed stimulus speculation

Published 10/21/2013, 05:30 AM
GC
-
HG
-
SI
-
ICON
-
Investing.com - Copper futures inched higher on Monday, as investors shifted their focus from the resolution of the U.S. government showdown to the duration of the Federal Reserve’s bond-buying program.

On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.307 a pound during European morning trade, up 0.25%.

Copper prices traded in a range between USD3.282 a pound, the daily low and a session high of USD3.311 a pound. The December contract settled 0.06% higher at USD3.299 a pound on Friday.

Copper prices were likely to find support at USD3.271 a pound, the low from October 17 and resistance at USD3.325 a pound, the high from October 16.

The dollar remained under pressure as concerns over the impact of the 16-day shutdown on the U.S. economic recovery fuelled expectations that the Fed would delay plans for rolling back its asset purchase program until at least the beginning of next year.

Investors were awaiting key U.S. data points later in the week in order to determine the impact of the government shutdown on the Fed's stimulus program.

The September nonfarm payrolls report, which had been originally scheduled for release on October 4, was due on Tuesday.

Copper traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.

The central bank is scheduled to meet October 29-30 to review the economy and assess policy.

Sentiment also remained support after upbeat Chinese economic data released last week eased fears over the strength of the recovery in the world's second-largest economy.

China’s economy expanded at an annual rate of 7.8% in the third quarter, in line with expectations and up from 7.5% in the three months to June.

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 December delivery added 0.2% to trade at USD1,317.00 a troy ounce, while silver for December delivery rallied 1.15% to trade at USD22.15 a troy ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.