Investing.com - Copper prices turned lower on Wednesday, after hitting a two-week high earlier in the session amid speculation policymakers in Beijing will implement fresh stimulus measures to support the economy.
On the Comex division of the New York Mercantile Exchange, copper for March delivery rose by as much as 3.7 cents, or 1.41%, to hit a session high of $2.618 a pound, the most since January 21, before trading at $2.569 during European morning hours, down 1.2 cents, or 0.47%.
Futures were likely to find support at the $2.496, the low from February 3, and resistance at $2.634, the high from January 21.
A day earlier, copper surged 9.1 cents, or 3.67%, to settle at $2.581 a pound as a rally in oil and global equity markets lifted sentiment.
Data released earlier showed that the HSBC/Markit China services purchasing managers' index fell to an eight-month low of 51.8 in January from 53.4 in December, missing expectations for a reading of 52.8.
The disappointing data came after a pair of reports released over the weekend showed that activity in China's manufacturing sector contracted last month, adding pressure on policymakers to stimulate a faltering economy.
Copper prices lost 33.1 cents, or 11.72%, in January as concerns over the global economic outlook and the impact on future demand prospects dampened the appeal of the commodity.
Elsewhere on the Comex, gold futures for April inched up $4.20, or 0.33%, to trade at $1,264.50 a troy ounce, while silver futures for March delivery dipped 2.8 cents, or 0.16% to trade at $17.29 an ounce.
Gold tumbled on Tuesday after the Greek government outlined its plans to renegotiate the terms of its €140 billion bailout, retreating from election pledges to demand a debt write-down.
The move eased concerns over a conflict with the country’s creditors which could lead to its exit from the euro zone.
Greek Finance Minister Yanis Varoufakis has proposed debt swaps to ease the country’s burden debt, under which creditors would swap outstanding debt for new growth-linked bonds. This could help to reduce the risk of losses on privately held bonds.
On the data front, the U.S. was to release a report on ADP nonfarm payrolls for January later in the day.
In addition, the Institute of Supply Management was to produce data on non-manufacturing activity growth in January, as investors look for further indications on the strength of the economy.