Investing.com - Copper futures edged higher during European morning trade on Monday, as the greenback took a breather from its recent rally against a basket of other major currencies sparked by upbeat U.S. employment data.
On the Comex division of the New York Mercantile Exchange, copper for December delivery traded at $3.015 a pound during European morning hours, up 1.6 cents, or 0.54%, from a closing price of $2.998 on Friday.
Futures were likely to find support at $2.985, the low from October 2, and resistance at $3.039, the high from October 2.
The greenback strengthened broadly on Friday after the Labor Department reported that the U.S. economy added 248,000 jobs in September, well ahead of forecasts for jobs growth of 215,000.
The unemployment rate ticked down from 6.0% to 5.9%, the lowest level since July 2008.
The robust data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner than markets are expecting.
The U.S. Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, traded at 86.57, down from Friday's four-year high of 86.87.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Comex copper prices lost 3.9 cents, or 1.28%, last week, amid speculation weakening economic growth in China will reduce demand for the industrial metal.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for December delivery inched up $1.00, or 0.08%, to trade at $1,193.90 a troy ounce, while silver for December delivery climbed 15.4 cents, or 0.92% to trade at $16.98 an ounce.
In the coming week, investors will be looking ahead to Wednesday’s Federal Reserve meeting minutes for further indications on the future possible direction of U.S. monetary policy.