Investing.com - Copper futures inched higher on Tuesday, as concerns over a cash crunch in China eased after the People’s Bank of China injected liquidity to the financial system.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.319 a pound during European morning trade, up 0.35%. Comex copper prices traded in a range between USD3.304 a pound and USD3.320 a pound.
Copper prices were likely to find support at USD3.291 a pound, the low from December 20 and resistance at USD3.323 a pound, the high from December 19.
The March contract settled 0.02% lower on Monday to end at USD3.307 a pound. Trading volumes are expected to remain light due to the Christmas holiday and as many traders already closed books to lock in profit before the end of the year.
The PBOC injected USD4.7 billion through open-market operations for the first time in three weeks on Tuesday, sending borrowing costs to around 5.5%, well off the previous day’s high of nearly 9%.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Market sentiment remained supported amid indications the U.S. economic recovery is deepening. The Commerce Department said Monday that U.S. personal spending rose 0.5% last month, the highest since June.
Investors looked ahead to U.S. data on durable goods orders and new home sales later in the day to gauge if the U.S. economy will be strong enough to allow the Federal Reserve to continue withdrawing support through 2014.
The U.S. is second behind China in global copper demand.
Elsewhere on the Comex, gold for February delivery rose 0.2% to trade at USD1,199.30 a troy ounce, while silver for March delivery declined 0.15% to trade at USD19.38 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.319 a pound during European morning trade, up 0.35%. Comex copper prices traded in a range between USD3.304 a pound and USD3.320 a pound.
Copper prices were likely to find support at USD3.291 a pound, the low from December 20 and resistance at USD3.323 a pound, the high from December 19.
The March contract settled 0.02% lower on Monday to end at USD3.307 a pound. Trading volumes are expected to remain light due to the Christmas holiday and as many traders already closed books to lock in profit before the end of the year.
The PBOC injected USD4.7 billion through open-market operations for the first time in three weeks on Tuesday, sending borrowing costs to around 5.5%, well off the previous day’s high of nearly 9%.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Market sentiment remained supported amid indications the U.S. economic recovery is deepening. The Commerce Department said Monday that U.S. personal spending rose 0.5% last month, the highest since June.
Investors looked ahead to U.S. data on durable goods orders and new home sales later in the day to gauge if the U.S. economy will be strong enough to allow the Federal Reserve to continue withdrawing support through 2014.
The U.S. is second behind China in global copper demand.
Elsewhere on the Comex, gold for February delivery rose 0.2% to trade at USD1,199.30 a troy ounce, while silver for March delivery declined 0.15% to trade at USD19.38 a troy ounce.