Investing.com - Copper prices hit the highest levels of the session on Thursday, as investors cheered reports of a cease-fire agreement between Russia and Ukraine.
On the Comex division of the New York Mercantile Exchange, copper for March delivery tacked on 2.5 cents, or 1.0%, to trade at $2.567 a pound during European morning hours.
Prices held in a range between $2.536 and $2.568 a pound. On Wednesday, copper for March delivery lost 1.0 cent, or 0.41%, to end at $2.541 a pound.
Futures were likely to find support at the $2.525, the low from February 10, and resistance at $2.590, the high from February 9.
Russian President Vladimir Putin confirmed that a cease fire deal with Ukraine starting February 15 had been reached, following months of violence.
The leaders of France and Germany helped broker the deal after nearly 12 hours of all-night peace talks.
Russia's MICEX climbed more than 2% after the announcement, while the ruble erased losses against the dollar to trade higher.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.35% to 94.83.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Elsewhere on the Comex, gold futures for April inched up $6.30, or 0.52%, to trade at $1,225.90 a troy ounce, while silver futures for March delivery rose 17.7 cents, or 1.06% to trade at $16.93 an ounce.
Market sentiment remained subdued after talks between Greece and European Union officials ended without an agreement, though both sides said there was still hope for a deal. Further talks are due to be held next Monday.
Greece’s current bailout is due to expire on February 28 and the new Greek government does not want it extended, fuelling fears over a conflict with its creditors which could trigger the country’s exit from the euro zone.
Athens has proposed an overhaul of 30% of its massive bailout deal, replacing it with a 10 point plan of economic reforms.
However, Greece’s creditors in the EU are insisting that the country must stick to the terms of the original bailout agreement.
Meanwhile, ongoing expectations for the Federal Reserve to start raising interest rates by mid-2015 capped gains.
Prices have been under pressure in recent sessions amid the growing possibility of an earlier Fed rate hike, following last week's robust U.S. jobs report, which saw market players bring forward expectations for the first rate increase to June.
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.
On the data front, the U.S. was to produce its weekly report on initial jobless claims in addition to data on retail sales later in the day.