Investing.com - Copper prices swung between gains and losses on Thursday, after China lowered its 2015 gross domestic product growth target to the lowest level in 11 years.
China's Premier Li Keqiang announced at the annual National People's Congress earlier that the government's target for economic growth in 2015 was set at "around 7%", down from a target of 7.5% in 2014.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, copper for May delivery ticked up 0.8 cents, or 0.31%, to trade at $2.668 a pound during European morning hours. Prices held in a tight range between $2.652 and $2.669.
Futures were likely to find support at $2.629, the low from March 3, and resistance at $2.695, the high from March 3.
On Wednesday, copper tacked on 0.3 cents, or 0.11%, to settle at $2.659 a pound.
Elsewhere on the Comex, gold futures for April delivery eased up 10 cents, or 0.01%, to trade at $1,201.00 a troy ounce, while silver futures for May delivery rose 6.9 cents, or 0.43% to trade at $16.22 an ounce.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% to 96.19 early on Thursday, the highest level since September 2003.
The greenback remained supported amid expectations for higher interest rates in the U.S.
Meanwhile, the euro was likely to remain under pressure as investors looked ahead to the European Central Bank meeting later in the day, when it was expected to announce details of its quantitative easing program.
Traders also looked ahead to the release of the latest U.S. nonfarm payrolls report on Friday, for further indications on the strength of the recovery in the labor market.
Market analysts expect the data to show that the U.S. economy added 240,000 jobs in February, slowing from a gain of 257,000 in January, while the unemployment rate was forecast to decline to 5.6% from 5.7%.
A strong U.S. nonfarm payrolls report was likely to add to speculation over when the Federal Reserve will begin to raise interest rates, while a weak number could boost gold by undermining the argument for an early rate hike.
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.