Copper declines with Greece, Yellen testimony in focus

Investing.com - Copper prices edged lower on Tuesday, as concerns over Greece kept investors cautious, while markets looked ahead to congressional testimony by Federal Reserve Chair Janet Yellen later in the day.

On the Comex division of the New York Mercantile Exchange, copper for May delivery shed 0.9 cents, or 0.36%, to trade at $2.577 a pound during European morning hours.

A day earlier, copper fell to $2.561, the lowest since February 17, before settling at $2.586, down 0.4 cents, or 0.17%.

Futures were likely to find support at the $2.550, the low from February 17, and resistance at $2.617, the high from February 20.

The Eurogroup is expected to mull Greece's revised list of reform proposals after the debt-strapped country submitted a list of proposed economic reforms to Brussels around midnight on Monday.

"In the Commission's view, this list is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review," said a source.

The reforms must be approved by the country’s lenders in order for Greece to secure the four-month extension to its €240 billion bailout.

Meanwhile, investors looked ahead to testimony from Federal Reserve Chairwoman Janet Yellen before the Senate Banking Committee in Washington later in the day, with market participants watching for any indication on when U.S. interest rates may start to rise.

Last week’s minutes of the Fed’s January meeting were more dovish than expected, showing that some officials thought that raising rates too soon could weigh on the U.S. economic recovery.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ticked up 0.25% to 94.90.

A stronger U.S. dollar usually weighs on copper, as it makes dollar-priced commodities more expensive for holders of other currencies.

Elsewhere on the Comex, gold futures for April delivery declined $5.70, or 0.47%, to trade at $1,195.10 a troy ounce, while silver futures for May delivery dipped 2.9 cents, or 0.18% to trade at $16.27 an ounce.

Gold has been under pressure in recent weeks amid ongoing expectations for the Federal Reserve to start raising interest rates later this year.

Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.