Investing.com - Copper futures gained on Wednesday, re-approaching last week’s four-month high as market sentiment was boosted by hopes that Greece may soon reach a consensus on a debt restructuring deal needed to avert a sovereign debt default.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.919 a pound during European morning trade, jumping 1.1%.
It earlier rose by as much as 1.5% to trade at USD3.925 a pound, the highest since January 27, when prices rose to a four-month high of USD3.939 a pound.
Later in the day, Greek Prime Minister Lucas Papademos was to hold talks with the leaders of Greece's three political parties to discuss the terms of new austerity measures being demanded in return for a second bailout, worth EUR130 billion.
European Union officials have said a final agreement on Greece’s EUR130 billion bailout must be approved by February 15, in order to avert a default when a EUR14.5 billion bond repayment comes due on March 20.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
The euro rose to an eight-week high against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, declined 0.1% to trade at 78.51.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, speculation that China planned to ease monetary policy to support economic growth provided further support after the People’s Bank of China introduced measures to help first-time home buyers.
Copper traders were awaiting the release of key Chinese inflation figures on Thursday, which was likely to show further signs of cooling. Chinese consumer prices probably rose 4% in January, compared with a 4.1% gain in December.
Credit Suisse said in a report earlier, “A further deceleration in inflation could open the door for additional cuts in the Reserve Requirement Ratio by the People's Bank of China. This in turn would be good news for cyclical assets such as industrial metals."
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for April delivery slipped 0.1% to trade at USD1,746.85 a troy ounce, while silver for March delivery rose 0.6% to trade at USD34.39 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.919 a pound during European morning trade, jumping 1.1%.
It earlier rose by as much as 1.5% to trade at USD3.925 a pound, the highest since January 27, when prices rose to a four-month high of USD3.939 a pound.
Later in the day, Greek Prime Minister Lucas Papademos was to hold talks with the leaders of Greece's three political parties to discuss the terms of new austerity measures being demanded in return for a second bailout, worth EUR130 billion.
European Union officials have said a final agreement on Greece’s EUR130 billion bailout must be approved by February 15, in order to avert a default when a EUR14.5 billion bond repayment comes due on March 20.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
The euro rose to an eight-week high against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, declined 0.1% to trade at 78.51.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, speculation that China planned to ease monetary policy to support economic growth provided further support after the People’s Bank of China introduced measures to help first-time home buyers.
Copper traders were awaiting the release of key Chinese inflation figures on Thursday, which was likely to show further signs of cooling. Chinese consumer prices probably rose 4% in January, compared with a 4.1% gain in December.
Credit Suisse said in a report earlier, “A further deceleration in inflation could open the door for additional cuts in the Reserve Requirement Ratio by the People's Bank of China. This in turn would be good news for cyclical assets such as industrial metals."
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for April delivery slipped 0.1% to trade at USD1,746.85 a troy ounce, while silver for March delivery rose 0.6% to trade at USD34.39 a troy ounce.