Investing.com - Copper futures were lower on Monday, amid ongoing expectations the Federal Reserve will begin unwinding its stimulus program sooner than previously expected.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.273 a pound during European morning trade, down 0.8%.
Copper prices fell to a session low of USD3.270 a pound earlier, the weakest level since October 29. The December contract ended 0.06% lower on Friday to settle at USD3.298 a pound.
Copper prices were likely to find support at USD3.246 a pound, the low from October 29 and resistance at USD3.325 a pound, the high from November 1.
Market players looked ahead to the release of key U.S. economic data later in the week to help assess the timing for a reduction in the Fed’s bond-purchasing program.
The U.S. is set to release preliminary data on third quarter economic growth on Thursday, while October’s highly-anticipated nonfarm payrolls report is scheduled for Friday.
The central bank sounded more optimistic than anticipated in its assessment of the economy following its policy-setting meeting last week, sparking speculation the Fed could start tapering stimulus at its December meeting.
Meanwhile, copper traders shrugged off data showing that service sector activity in China improved to a 14-month high in October.
China’s top Communist Party officials will meet in Beijing from November 9-12, amid expectations that the country’s new government will unveil economic reforms.
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 inched up 0.1% to trade at USD1,314.10 a troy ounce, while silver for December delivery shed 0.55% to trade at USD21.71 a troy ounce.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.273 a pound during European morning trade, down 0.8%.
Copper prices fell to a session low of USD3.270 a pound earlier, the weakest level since October 29. The December contract ended 0.06% lower on Friday to settle at USD3.298 a pound.
Copper prices were likely to find support at USD3.246 a pound, the low from October 29 and resistance at USD3.325 a pound, the high from November 1.
Market players looked ahead to the release of key U.S. economic data later in the week to help assess the timing for a reduction in the Fed’s bond-purchasing program.
The U.S. is set to release preliminary data on third quarter economic growth on Thursday, while October’s highly-anticipated nonfarm payrolls report is scheduled for Friday.
The central bank sounded more optimistic than anticipated in its assessment of the economy following its policy-setting meeting last week, sparking speculation the Fed could start tapering stimulus at its December meeting.
Meanwhile, copper traders shrugged off data showing that service sector activity in China improved to a 14-month high in October.
China’s top Communist Party officials will meet in Beijing from November 9-12, amid expectations that the country’s new government will unveil economic reforms.
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 inched up 0.1% to trade at USD1,314.10 a troy ounce, while silver for December delivery shed 0.55% to trade at USD21.71 a troy ounce.