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Copper edges higher ahead of U.S. housing, inflation data

Published 08/19/2014, 05:13 AM
Copper rises ahead of U.S. housing, inflation data
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Investing.com - Copper futures edged higher on Tuesday, as market players looked ahead to the release of key U.S. data later in the session for further indications on the strength of the economy.

On the Comex division of the New York Mercantile Exchange, copper for September delivery inched up 0.24%, or 0.7 cents, to trade at $3.117 a pound during European morning hours.

Prices held in a narrow range between $3.106 and $3.122 a pound.

A day earlier, copper futures rose 0.19%, or 0.6 cents, to settle at $3.109 a pound, following the release of upbeat U.S. homebuilder confidence data and amid easing concerns over the conflict in eastern Ukraine.

Futures were likely to find support at $3.084, the low from August 15 and resistance at $3.126, the high from August 18.

Investors were looking ahead to U.S. inflation data later in the day for further indications on the possible future path of monetary policy.

Later in the week, market players will be keeping a close eye on Wednesday's release of minutes from the Federal Reserve's July policy meeting as well as comments from the Fed's three-day conference in Jackson Hole, Wyoming, which starts on Thursday.

The spotlight will be on Fed Chair Janet Yellen, who will speak on Friday in her first appearance at Jackson Hole as head of the U.S. central bank.

Elsewhere on the Comex, gold for December delivery tacked on 0.14%, or $1.80, to trade at $1,301.10 a troy ounce, while silver for September delivery edged up 0.12%, or 2.3 cents, to trade at $19.65 an ounce.

Ukrainian Foreign Minister Pavlo Klimkin met Russian counterpart Sergei Lavrov for more than five hours of talks in Berlin on Monday, in hopes of reaching a ceasefire or a political solution to the four-month old conflict in eastern Ukraine.

Concerns over the conflict between Russia and Ukraine escalated last Friday after Ukraine’s military attacked and destroyed a number of armored vehicles that entered the country from Russia.

U.S. and European officials had previously warned that Moscow could use a humanitarian convoy as a pretext for an invasion.

Gold is often seen as a haven investment in times of geopolitical uncertainty.

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