Investing.com - Copper futures swung between small gains and losses during European morning trade on Thursday, as investors remained cautious ahead of the European Central Bank's highly anticipated policy statement later in the day.
On the Comex division of the New York Mercantile Exchange, copper for December delivery traded at $3.038 a pound during European morning hours, up 0.2 cents from a closing price of $3.036 on Wednesday.
Futures were likely to find support at $3.000, the low from October 1, and resistance at $3.060, the high from September 30.
Market players are awaiting the European Central Bank's policy meeting later in the day for further details on the bank's plan to purchase asset-backed securities, first announced in September.
Investors 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 215,000 jobs in September, after a gain of 142,000 in August.
Gains were limited as appetite for growth-linked assets weakened after a slew of disappointing manufacturing reports on Wednesday showed that factory activity in the U.S. slowed more than expected last month, Germany’s manufacturing sector slid into contraction territory for the first time in 14 months, while activity in China stalled.
Concerns over unrest in Hong Kong and a confirmed Ebola diagnosis in the U.S. also contributed to the risk-off mood.
Elsewhere on the Comex, gold for December delivery inched up $1.00 to trade at $1,216.50 a troy ounce, while silver for December delivery shed 7.1 cents to trade at $17.18 an ounce.
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 that the Fed is growing closer to raising interest rates have boosted the dollar and weighed on precious metals in recent months.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.