Investing.com - Copper futures edged lower on Thursday, as a round of profit taking set in after prices rose to the highest level in nearly three-months on Wednesday.
Copper traders now looked ahead to the release of a series of U.S. economic data later in the trading day amid ongoing uncertainty over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.327 a pound during European morning trade, down 0.4%.
Nymex copper prices traded in a range between USD3.307 a pound, the daily low and a session high of USD3.347 a pound.
Copper prices were likely to find support at USD3.242 a pound, the low from August 9 and resistance at USD3.369 a pound, the high from June 6.
The September contract settled up 0.7% at USD3.340 a pound on Wednesday, after hitting a session high of USD3.369 a pound, the strongest level since June 6.
Copper’s gains on Wednesday came amid growing optimism over the strength of the global economy.
Data showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
The euro zone economy expanded 0.3% in the three months to June, the fastest quarterly expansion since the first quarter of 2011.
France’s economy expanded 0.5%, following two consecutive quarters of contraction, while Germany’s economy expanded by a larger than expected 0.7%.
Europe as a region is third in global demand for the industrial metal.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
Market players now looked ahead to U.S. data on consumer inflation, jobless claims and industrial production, as well as reports on manufacturing activity in New York and Philadelphia.
Investors have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere on the Comex, gold for December delivery added 0.4% to trade at USD1,338.90 a troy ounce, while silver for September delivery rallied 1.4% to trade at USD22.09 a troy ounce.
Moves in the gold and silver price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
Copper traders now looked ahead to the release of a series of U.S. economic data later in the trading day amid ongoing uncertainty over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.327 a pound during European morning trade, down 0.4%.
Nymex copper prices traded in a range between USD3.307 a pound, the daily low and a session high of USD3.347 a pound.
Copper prices were likely to find support at USD3.242 a pound, the low from August 9 and resistance at USD3.369 a pound, the high from June 6.
The September contract settled up 0.7% at USD3.340 a pound on Wednesday, after hitting a session high of USD3.369 a pound, the strongest level since June 6.
Copper’s gains on Wednesday came amid growing optimism over the strength of the global economy.
Data showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
The euro zone economy expanded 0.3% in the three months to June, the fastest quarterly expansion since the first quarter of 2011.
France’s economy expanded 0.5%, following two consecutive quarters of contraction, while Germany’s economy expanded by a larger than expected 0.7%.
Europe as a region is third in global demand for the industrial metal.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
Market players now looked ahead to U.S. data on consumer inflation, jobless claims and industrial production, as well as reports on manufacturing activity in New York and Philadelphia.
Investors have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere on the Comex, gold for December delivery added 0.4% to trade at USD1,338.90 a troy ounce, while silver for September delivery rallied 1.4% to trade at USD22.09 a troy ounce.
Moves in the gold and silver price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.