Investing.com - Copper futures held steady near the previous session’s three-week high on Tuesday, as upbeat data from China continued to support demand for growth-linked assets, while markets eyed the release of U.S. economic reports later in the day.
On the Comex division of the New York Mercantile Exchange, copper for September eased down 0.05%, or 0.1 cents, to trade at $3.140 a pound during European morning hours. Futures held in a range between $3.126 and $3.152 a pound.
Copper rose to $3.155 on Monday, the most since June 3, before trimming gains to settle at $3.142, up 0.93%, or 2.9 cents.
Futures were likely to find support at $3.067 a pound, the low from June 20 and resistance at $3.168 a pound, the high from June 3.
A report on Monday showed that China’s HSBC manufacturing PMI came in at 50.8 in June, the first time the index rose above the 50 level separating growth from contraction in six months.
Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Market players now looked ahead to key U.S. data on consumer confidence, as well as a report on new home sales later in the day to gauge the strength of the economy.
The outlook for the U.S. recovery was boosted after data on Monday showed that manufacturing activity grew at the fastest rate in four years in June, with the Markit manufacturing purchasing managers’ index rising to 57.5 from 56.4 in May.
Elsewhere on the Comex, gold for August delivery rose 0.43%, or $5.70, to trade at $1,324.10 a troy ounce, while silver for September delivery advanced 0.71%, or 14.8 cents, to trade at $21.11 an ounce.
Concerns about ongoing violence in Iraq lingered, as militants from the Islamic State of Iraq and the Levant seized control of key areas near the border with Jordan and Syria over the weekend.
Iraqi Prime Minister Nuri al-Maliki has agreed to a July 1 deadline to create a new government, a step required by Washington if Baghdad receives U.S. assistance in battling the insurgents.