Investing.com - Copper prices rallied sharply on Thursday, as traders continued to monitor the direction of the U.S. dollar to gauge the appeal of the industrial metal.
On the Comex division of the New York Mercantile Exchange, copper for May delivery jumped 5.3 cents, or 1.89%, to trade at $2.845 a pound during European morning hours after hitting an intraday peak of $2.867.
A day earlier, copper dipped 1.1 cents, or 0.39%, to settle at $2.792. Futures were likely to find support at $2.755, the low from March 23, and resistance at $2.914, the high from March 23.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.7% to 96.40 early on Thursday.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
The greenback remained under pressure as a recent soft patch of U.S. economic data added to uncertainty over the timing of a future interest rate hike.
Data on Wednesday showed that durable goods orders fell 1.4% last month, compared to expectations for a gain of 0.4%. Orders for core capital goods, a key barometer of private-sector business investment fell 1.4%, the sixth consecutively monthly decline.
Later in the day, the U.S. was to release weekly data on initial jobless claims as investors look for more clues over the strength of the economy.
Comex copper prices have been well-supported in recent sessions amid speculation demand for the industrial metal will increase due to accommodative central bank policies in the U.S., Europe and China.
Elsewhere on the Comex, gold futures for April delivery rallied $14.50, or 1.21%, to trade at $1,211.30 a troy ounce, while silver futures for May delivery rose 23.7 cents, or 1.39% to trade at $17.23 an ounce.
Demand for safe-haven assets was boosted after Saudi Arabia and a coalition of Gulf region allies launched air strikes in Yemen to counter Iran-backed Houthi rebels besieging the southern city of Aden.
Global oil prices spiked more than three dollars on the news. There are fears that an escalation of hostilities could set off a conflict across the region and send oil prices skyrocketing.
Countries in the Middle East were responsible for nearly 35% of global oil production last year.