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Copper futures edge higher as China returns from holiday

Published 10/08/2013, 05:22 AM
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Investing.com - Copper futures edged higher on Tuesday, as investors speculated demand for the red metal will pick up as markets in mainland China re-opened following a week-long holiday.

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

On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.311 a pound during European morning trade, up 0.45%.

Copper prices held in a range between USD3.287 a pound, the daily low and a session high of USD3.314 a pound. The December contract settled 0.14% lower at USD3.296 a pound on Monday.

Copper prices were likely to find support at USD3.258 a pound, the low from October 4 and resistance at USD3.324 a pound, the high from October 3.

Gains were limited as markets continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.

President Barack Obama repeated Monday that he is willing to negotiate with congressional Republicans on a range of topics, including healthcare and energy policy, but only after the government is reopened.

Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks about spending cuts.

Congress must also raise the country's USD16.7 trillion borrowing limit by October 17 or risk default.

Wall Street investment bank Goldman Sachs reiterated their forecast for lower copper prices, citing weak global demand outside of China.

The bank expected copper prices to average USD2.993 a pound over the next three-and-six months.

Elsewhere on the Comex, gold for December delivery fell 0.2% to trade at USD1,322.40 a troy ounce, while silver for December delivery shed 0.35% to trade at USD22.30 a troy ounce.

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