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Copper eases off 10-week high after China data disappoints

Published 05/13/2014, 03:19 AM
Copper drops from ten-week high after disappointing China data

Investing.com - Copper prices eased off ten-week highs struck in the previous session on Tuesday, after data showed that Chinese industrial production and retail sales rose less than expected in April, adding to concerns over a slowdown in the world’s second-largest economy.

On the Comex division of the New York Mercantile Exchange, copper for July delivery declined 0.23%, or 0.7 cents, to trade at $3.141 a pound during European morning hours. Prices held in a range between $3.123 and $3.154 a pound.

Copper prices rallied to $3.155 a pound on Monday, the most since March 7, before settling at $3.149 a pound, up 2.16%, or 6.6 cents.

Futures were likely to find support at $3.084 a pound, the low from May 12 and resistance at $3.219 a pound, the high from March 7.

Data released earlier showed that industrial production in China rose at an annualized rate of 8.7% in April, below expectations for a 8.9% increase.

A separate report showed that Chinese retail sales rose by a smaller-than-forecast 11.9% last month.

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

Meanwhile, investors looked ahead to the release of key U.S. data on retail sales due later in the session for further indications on the strength of the economy and the need for stimulus.

Elsewhere on the Comex, gold for June delivery shed 0.34%, or $4.40, to trade at $1,291.40 a troy ounce, while silver for July delivery declined 0.55%, or 10.8 cents, to trade at $19.43 an ounce.

Investors remained cautious after pro-Russian separatists in the eastern Ukrainian regions of Donetsk and Luhansk said they may hold a second referendum on joining Russia, similar to the one in Crimea.

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