Investing.com - Copper futures regained strength on Wednesday, trading close to a two-week high amid indications euro zone policy makers are increasing efforts to tackle the region’s ongoing debt crisis, while a weaker U.S. dollar also lent support.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.366 a pound during European morning trade, jumping 2.3%.
It earlier rose by as much as 2.45% to trade at USD3.369 a pound, hovering close to a two-week high of USD3.389 it hit on Monday.
Risk appetite recovered amid reports that Slovakia’s government may hold a new vote on expanding the size and power of the region’s bailout fund as soon as Wednesday afternoon.
Slovak lawmakers rejected a plan to boost the size of the European Financial Stability Facility late Tuesday, resulting in the collapse of the nation’s government.
The country is the last of the 17-member bloc which has yet to support the expansion of the EFSF, which needs to be approved by all euro zone states for it to go active.
Also supporting sentiment, European Commission President Jose Barroso was to present proposals on bank recapitalization to the European Parliament later in the day.
The euro rallied to a four-week high against the greenback on the news, while the dollar index, which tracks the performance of the U.S. dollar against a basket of six other major currencies, was down 0.95% to trade at 77.19, the lowest since September 16.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, copper traders were awaiting Thursday’s report on Chinese copper import and export figures for September to gauge the strength of demand in the world’s largest consumer of the industrial metal.
Elsewhere on the Comex, gold for December delivery jumped 1.6% to trade at USD1,687.35 a troy ounce, while silver for December delivery surged 2.58% to trade at USD32.82 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.366 a pound during European morning trade, jumping 2.3%.
It earlier rose by as much as 2.45% to trade at USD3.369 a pound, hovering close to a two-week high of USD3.389 it hit on Monday.
Risk appetite recovered amid reports that Slovakia’s government may hold a new vote on expanding the size and power of the region’s bailout fund as soon as Wednesday afternoon.
Slovak lawmakers rejected a plan to boost the size of the European Financial Stability Facility late Tuesday, resulting in the collapse of the nation’s government.
The country is the last of the 17-member bloc which has yet to support the expansion of the EFSF, which needs to be approved by all euro zone states for it to go active.
Also supporting sentiment, European Commission President Jose Barroso was to present proposals on bank recapitalization to the European Parliament later in the day.
The euro rallied to a four-week high against the greenback on the news, while the dollar index, which tracks the performance of the U.S. dollar against a basket of six other major currencies, was down 0.95% to trade at 77.19, the lowest since September 16.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, copper traders were awaiting Thursday’s report on Chinese copper import and export figures for September to gauge the strength of demand in the world’s largest consumer of the industrial metal.
Elsewhere on the Comex, gold for December delivery jumped 1.6% to trade at USD1,687.35 a troy ounce, while silver for December delivery surged 2.58% to trade at USD32.82 a troy ounce.