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Copper futures little changed ahead of U.S. data

Published 11/26/2013, 05:12 AM
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Investing.com - Copper futures were little changed in rangebound trade on Tuesday, investors looked ahead to key U.S. economic data due later in the session to gauge the strength of the economy and the need for stimulus.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.231 a pound during European morning trade, up 0.02%.

Comex copper prices traded in a range between USD3.220 a pound, the daily low and a session high of USD3.239 a pound.

The March contract settled 0.36% higher on Monday to end at USD3.230 a pound.

Copper prices were likely to find support at USD3.206 a pound, the low from November 25 and resistance at USD3.258 a pound, the high from November 12.

The U.S. was release data on housing starts and building permit for September and October later in the day, as well as a report on consumer confidence.

Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus.

Minutes from the Fed’s October meeting published last week revealed that the central bank could start scaling back its USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.

The Fed’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.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.3% to trade at 80.70, moving off the previous session’s high of 81.06.

A weaker dollar increases demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.

Elsewhere on the Comex, gold for February delivery rose 0.8% to trade at USD1,251.45 a troy ounce, while silver for March delivery rallied 1.15% to trade at USD20.15 a troy ounce.

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