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Copper fluctuates in choppy trade after China growth data

Published 07/16/2014, 04:45 AM
Copper swings between gains and losses after China data deluge
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Investing.com - Copper futures swung between small gains and losses on Wednesday, as investors reacted to second quarter growth data from China and remarks from Federal Reserve Chair Janet Yellen at her two-day testimony on Capitol Hill.

On the Comex division of the New York Mercantile Exchange, copper for September delivery eased down 0.06%, or 0.2 cents, to trade at $3.248 during European morning hours.

Futures held in a tight range between $3.243 and $3.256 a pound. Copper fell to $3.223 on Tuesday, the lowest since July 2, before settling at $3.249, up 0.02%.

Futures were likely to find support at $3.223 a pound, the low from July 15 and resistance at $3.294 a pound, the high from July 14.

Official data released earlier showed that China’s economy expanded at an annual rate of 7.5% in the second quarter, above expectations for growth of 7.4%.

A separate report showed that industrial production in China rose by an annualized rate of 9.2% in June, compared to expectations for a 9% increase, after an 8.8% gain in the previous month.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.

Meanwhile, Federal Reserve Janet Yellen continues her testimony in front of U.S. lawmakers on Wednesday.

Ms. Yellen said Tuesday that the U.S. economy is continuing to improve, but added that the recovery is not yet complete and reiterated that rates are likely to remain on hold for a considerable period after the bank’s quantitative easing program ends.

The remarks came during testimony to the Senate Banking Committee in Washington.

Elsewhere on the Comex, gold for August delivery inched up 0.08%, or $1.00, to trade at $1,298.10 a troy ounce, while silver for September delivery shed 0.53%, or 11.1 cents, to trade at $20.77 an ounce.

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