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Copper fluctuates ahead of China PMI reports

Published 06/30/2014, 04:48 AM
Copper wavers ahead of China PMI data
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Investing.com - Copper futures fluctuated in rangebound trade on Monday, as investors looked ahead to key manufacturing data out of China on Tuesday to gauge the strength of the economy.

On the Comex division of the New York Mercantile Exchange, copper for September delivery dipped 0.13%, or 0.4 cents, to trade at $3.164 a pound during European morning hours.

Futures held in a tight range between $3.162 and $3.172 a pound. Copper ended Friday’s session down 0.13%, or 0.4 cents, to settle at $3.168.

Futures were likely to find support at $3.123 a pound, the low from June 25 and resistance at $3.189 a pound, the high from June 27.

China is due to release its official manufacturing purchasing manager's index for June on Tuesday, which many are predicting could hit a six-month high. HSBC's final PMI reading for June is also due for release on Tuesday.

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

Investors were also turning their attention to the U.S. nonfarm payrolls report for June, due to be released one day early on Thursday, for further indications on the strength of the labor market.

Analysts expect the U.S. economy to have added 210,000 jobs this month while the jobless rate is seen steady at 6.3%.

A European Central Bank policy meeting on Thursday will also be in focus.

Elsewhere on the Comex, gold for August delivery shed 0.42%, or $5.50, to trade at $1,314.50 a troy ounce, while silver for September delivery declined 1.05%, or 22.1 cents, to trade at $20.90 an ounce.

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