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Copper futures inch up with China economy in focus

Published 06/16/2014, 04:27 AM
Copper rises with China economy in spotlight
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Investing.com - Copper futures inched up on Monday, after comments from Chinese Premier Li Keqiang eased concerns over the outlook for the world’s largest copper consumer.

On the Comex division of the New York Mercantile Exchange, copper for July rose to a session high of $3.054 a pound, the most since June 11, before coming off the highs to last trade at $3.052 during European morning hours, up 0.75%, or 2.3 cents.

Copper ended Friday’s session up 0.46%, or 1.4 cents, to settle at $3.029 a pound. Futures were likely to find support at $3.014 a pound, the low from June 13 and resistance at $3.070 a pound, the high from June 11.

Sentiment rose after Premier Li Keqiang said on Monday that Beijing is confident it will hit its growth target of 7.5% this year.

Data released on Friday showed that industrial production in China rose at an annual rate of 8.8% last month, in line with expectations, after an increase of 8.7% in April.

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 August delivery picked up 0.6%, or $7.60, to trade at $1,281.70 a troy ounce, while silver for July delivery advanced 0.41%, or 8.0 cents, to trade at $19.73 an ounce.

Markets continued to monitor developments in Iraq, where the conflict between radical Sunni insurgents and Shiite Iraqi soldiers continued over the weekend.

Gold and silver are often considered as havens during times of geopolitical turmoil.

Investors were also cautious ahead of the outcome of the upcoming Federal Reserve policy meeting on Wednesday, as they await fresh indications on the timing of possible interest rates increases.

The U.S. is to produce data on industrial production and manufacturing activity in the Empire State later in the day.

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