Copper futures inch higher ahead of Greek debt talks

Investing.com - Copper prices edged higher on Wednesday, as investors turned their attention to a key meeting between European leaders and Greece later in the day.

The euro group of finance ministers was to hold talks later in the day to discuss whether to present a final plan to European Union leaders at a summit meeting on Thursday. If an agreement is reached the Greek parliament could vote on a deal as soon as this weekend.

Ahead of the meeting, Greece's Prime Minister Alexis Tsipras was to hold talks with European Central Bank President Mario Draghi, International Monetary Fund head Christine Lagarde and European Commission President Jean-Claude Juncker.

Copper for July delivery on the Comex division of the New York Mercantile Exchange tacked on 0.9 cents, or 0.34%, to trade at $2.622 a pound during European morning hours.

Futures were likely to find support at $2.559, the low from June 22, and resistance at $2.642, the high from June 18. A day earlier, copper jumped 4.6 cents, or 1.79%, to end at $2.613 on hopes for an increase in demand for the red metal.

Elsewhere, gold futures for August delivery shed 20 cents, or 0.02%, to trade at $1,176.40 a troy ounce, while silver futures for July delivery rose 9.5 cents, or 0.6% to trade at $15.83 an ounce.

Gold weakened amid renewed expectations for higher U.S. interest rates later this year. Federal Reserve Governor Jerome Powell said Tuesday there was a 50-50 chance of a rate hike at the Fed's September meeting and added that he envisioned a second hike in December.

Meanwhile, U.S. data showed that new home sales jumped to a more than seven-year high in May, bolstering the outlook for the economy.

A separate report showing a rebound in business investment plans last month also boosted the outlook for growth this quarter after a weak start to the year.

The upbeat data boosted optimism over the health of the economy and supported the case for a U.S. interest rate hike later this year.

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.