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Copper trades near 4-month high ahead of ADP jobs data

Published 07/02/2014, 05:09 AM
Copper holds near 4-month high ahead of U.S. jobs data
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Investing.com - Copper futures traded near a four-month high on Wednesday, as investors looked ahead to key U.S. employment data for further indications on the strength of the labor market.

On the Comex division of the New York Mercantile Exchange, copper for September delivery tacked on 0.14%, or 0.4 cents, to trade at $3.209 a pound during European morning hours. Prices held in a range between $3.183 and $3.209 a pound.

Copper rose to $3.213 a pound on Tuesday, the most since March 7, before trimming gains to settle at $3.204, up 0.02%, or 0.1 cents.

Futures were likely to find support at $3.162 a pound, the low from June 30 and resistance at $3.219 a pound, the high from March 7.

The U.S. is to release the ADP report on private sector job creation in June later in the session. The report comes ahead of Thursday's monthly government jobs report that is expected to show a gain of 212,000 new jobs in June.

The data will be released one day earlier than usual due to the July 4 U.S. Independence Day holiday on Friday.

Copper prices have been well-supported in recent weeks amid growing optimism over the health of the U.S. economy and speculation demand from top consumer China will increase in the near-term.

Elsewhere on the Comex, gold for August delivery eased up 0.02%, or 20 cents, to trade at $1,326.80 a troy ounce, while silver for September delivery slipped 0.09%, or 1.9 cents, to trade at $21.09 an ounce.

Gold and silver prices remained supported amid expectations the Federal Reserve will keep rates on hold for an extended period of time after data last week showed that the U.S. economy shrank at an annual rate of 2.9% in the first quarter.

Market players were looking ahead to a speech from Fed Chair Janet Yellen at the International Monetary Fund later in the day for further indications on the future course of monetary policy.

Her comments will be followed by a conversation with IMF Managing Director Christine Lagarde.

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