Investing.com - Copper futures fell to a two-week low on Tuesday, amid growing speculation the Federal Reserve will begin tapering its asset purchase program at one of its next few meetings.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.169 a pound during European morning trade, down 0.4%.
Comex copper prices fell to a session low of USD3.164 a pound earlier, the weakest level since November 21.
The March contract settled 0.7% lower on Monday to end at USD3.182 a pound.
Copper prices were likely to find support at USD3.146 a pound, the low from November 21 and resistance at USD3.215 a pound, the high from December 2.
Monday’s losses came after the Institute for Supply Management said that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November.
The upbeat data reinforced expectations that the Fed will begin to reduce monetary stimulus sooner rather than later.
Investors now looked ahead to key U.S. economic data later in the week to further gauge the strength of the economy and the need for stimulus.
The U.S. is to release data on third quarter gross domestic product on Thursday, while November’s closely-watched nonfarm payrolls report is scheduled for Friday.
The Federal Reserve, which holds its next meeting on December 17-18, has said the timing of its tapering depends on the health of the labor and housing markets.
Prices of the industrial metal are down approximately 14% this year on concerns the Fed would begin cutting back its easy-money policy by trimming its USD85-billion monthly bond purchasing program.
The U.S. central bank’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere on the Comex, gold for February delivery inched up 0.05% to trade at USD1,222.50 a troy ounce, while silver for March delivery fell 0.5% to trade at USD19.18 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.169 a pound during European morning trade, down 0.4%.
Comex copper prices fell to a session low of USD3.164 a pound earlier, the weakest level since November 21.
The March contract settled 0.7% lower on Monday to end at USD3.182 a pound.
Copper prices were likely to find support at USD3.146 a pound, the low from November 21 and resistance at USD3.215 a pound, the high from December 2.
Monday’s losses came after the Institute for Supply Management said that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November.
The upbeat data reinforced expectations that the Fed will begin to reduce monetary stimulus sooner rather than later.
Investors now looked ahead to key U.S. economic data later in the week to further gauge the strength of the economy and the need for stimulus.
The U.S. is to release data on third quarter gross domestic product on Thursday, while November’s closely-watched nonfarm payrolls report is scheduled for Friday.
The Federal Reserve, which holds its next meeting on December 17-18, has said the timing of its tapering depends on the health of the labor and housing markets.
Prices of the industrial metal are down approximately 14% this year on concerns the Fed would begin cutting back its easy-money policy by trimming its USD85-billion monthly bond purchasing program.
The U.S. central bank’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere on the Comex, gold for February delivery inched up 0.05% to trade at USD1,222.50 a troy ounce, while silver for March delivery fell 0.5% to trade at USD19.18 a troy ounce.