Copper rebounds after falling to lowest level since June 2009

Investing.com - Copper prices rebounded on Thursday, as investors returned to the market to seek cheap valuations one day after prices fell to the lowest level in almost six years.

On the Comex division of the New York Mercantile Exchange, copper for March delivery jumped 6.3 cents, or 2.5%, to trade at $2.568 a pound during European morning hours.

A day earlier, copper hit $2.423, a level not seen since June 2009, before settling at $2.505, down 13.8 cents, or 5.24%, as concerns over the global economic outlook and the impact on future demand prospects dampened the appeal of the commodity.

Futures were likely to find support at the $2.423, the low from January 14, and resistance at $2.729, the high from January 13.

Elsewhere, gold futures for February delivery dipped $6.80, or 0.55%, to trade at $1,227.70 a troy ounce, while silver futures for March delivery dropped 20.3 cents, or 1.19% to trade at $16.78 an ounce.

Investors looked ahead to weekly data on initial jobless claims, as well as reports on producer prices and manufacturing activity in the Philadelphia region, for further indications on the strength of the economy.

Data on Wednesday showed that retail sales in the U.S. dropped by the most in 11 months in December, suggesting that the Federal Reserve could keep rates on hold for longer.

A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

The precious metal lost nearly 2% in 2014 amid indications a strengthening U.S. economic recovery will force the Fed to start raising interest rates sooner and faster than previously thought.

Meanwhile, oil futures resumed their decline on Thursday, as market players continued to focus on a glut in global supplies.

London-traded Brent prices fell $1.31, or 2.64%, to $48.55 a barrel, while Nymex oil sank 86 cents, or 1.78%, to end at $47.62.

The dollar edged higher against the euro and the yen on Thursday after falling in the previous session, boosted by the diverging policy outlook between the Fed and central banks in Europe and Japan.

The euro remained under pressure after an interim ruling by the European Court of Justice on Wednesday was seen as clearing the way for the European Central Bank to implement quantitative easing measures at its upcoming meeting on January 22.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% to 92.42, not far from the 12-year peaks of 92.76 scaled last week.