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Copper futures rise to 3-week high after China factory data

Published 12/10/2013, 05:49 AM
Copper futures rise to 3-week high after China factory data
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Investing.com - Copper futures rose to a three-week high on Tuesday, after data showed industrial production in China increased in line with expectations last month.

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

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.261 a pound during European morning trade, up 0.1%. Comex copper prices rose to a session high of USD3.264 a pound earlier, the strongest level since November 24.

The March contract settled 0.29% higher on Monday to end at USD3.258 a pound.

Copper prices were likely to find support at USD3.231 a pound, the low from December 9 and resistance at USD3.270 a pound, the high from November 24.

Industrial production in China rose 10% last month, broadly in line with forecasts for a 10.1% increase, while retail sales jumped 13.7%, beating estimates for a 13.3% gain.

Elsewhere on the Comex, gold for February delivery rallied 1.1% to trade at USD1,247.40 a troy ounce, while silver for March delivery jumped 1.85% to trade at USD20.06 a troy ounce.

Gold and silver prices rallied as a broadly weaker U.S. dollar boosted the appeal of the precious metals.

Dollar weakness usually benefits precious metals, like silver and gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

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