Investing.com - Copper futures bounced off the previous session's eight-month low on Thursday, amid speculation policymakers around the world will have to introduce further stimulus measures to support the global economy and boost growth.
On the Comex division of the New York Mercantile Exchange, copper for March delivery tacked on 0.6 cents, or 0.21% to trade at $2.963 a pound during European morning hours.
A day earlier, copper prices fell to $2.935 a pound, the lowest level since March 19, before settling at $2.956, down 2.1 cents, or 0.71%, amid mounting concerns over the health of the global economy.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
Futures were likely to find support at $2.935, the low from November 26, and resistance at $3.024, the high from November 25.
Expectations that the European Central Bank is moving closer to implementing additional stimulus measures to spur growth and inflation in the euro area were boosted on Wednesday after ECB vice-president Vitor Constancio said the central bank could begin quantitative easing as soon as the first quarter of 2015.
The ECB's current stimulus program includes purchases of asset-backed securities and covered bonds, though markets are keeping a close eye out for plans to announce purchases of government debt, a stimulus tool known as quantitative easing.
Europe as a region is third in global demand for the industrial metal.
Trade volumes were expected to remain light on Thursday, with U.S. markets closed for the Thanksgiving holiday.
Data on Wednesday showed that initial jobless claims rose to the highest level since early September last week, while personal spending rose less than expected. Durable goods orders rose in line with forecasts, but core durable goods orders fell unexpectedly.
Other reports showed that U.S. consumer sentiment was revised lower, manufacturing activity in the Chicago region slowed and data from the housing sector was mixed.
The data indicated that the recovery in the U.S. is continuing, albeit at a modest pace.
Elsewhere on the Comex, gold futures for February delivery dipped $3.10, or 0.26%, to trade at $1,194.70 a troy ounce, while silver futures for March delivery declined 19.8 cents, or 1.19% to trade at $16.41 an ounce.
Gold prices are likely to remain vulnerable in the near-term amid indications a strengthening U.S. economic recovery will force the Federal Reserve to start raising interest rates sooner and faster than previously thought.
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.