Investing.com - Copper futures rallied more than 2% on Thursday to hit the highest level since June, as appetite for growth-linked assets improved after China reported stronger-than-expected trade figures for July.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.251 a pound during European morning trade, up 2.5%.
Nymex copper prices hit a session high of USD3.257 a pound earlier, the strongest level since June 11.
The September contract settled at USD3.173 a pound on Wednesday, unchanged for the day.
Copper prices were likely to find support at USD3.148 a pound, the low from August 6 and resistance at USD3.284 a pound, the high from June 10.
Market sentiment improved after official trade data released earlier showed that Chinese exports rose 5.1% from a year earlier in July, beating expectations for a 3% increase and following a 3.1% drop in June.
The data showed that imports surged 10.9%, blowing past forecasts for a 2.1% increase and following a 0.7% decline in June.
The country’s trade surplus narrowed to USD17.8 billion for the month from a surplus of USD27.1 billion in June.
The upbeat report eased concerns over a slowdown in the world’s second-largest economy and biggest consumer of the industrial metal.
Market players now looked ahead to a raft of Chinese economic data on Friday, including reports on inflation, industrial production and retail sales.
A broadly weaker U.S. dollar also supported gains. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 81.17, the lowest level since June 19.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Copper traders awaited the release of a weekly report on U.S. initial jobless claims later in the trading day, a data point that will be scrutinized for its potential impact on the Fed's monetary policy stance.
Investors have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Cleveland Fed President Sandra Pianalto said Wednesday there has been “meaningful improvement” in the labor market and that tapering may be warranted if it continues to strengthen.
Her comments echoed similar remarks made by Chicago Fed President Charles Evans and Dallas Fed President Richard Fisher earlier in the week.
Elsewhere on the Comex, gold for December delivery added 0.3% to trade at USD1,289.50 a troy ounce, while silver for September delivery rose 0.95% to trade at USD19.69 a troy ounce.
Moves in the gold and silver price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.251 a pound during European morning trade, up 2.5%.
Nymex copper prices hit a session high of USD3.257 a pound earlier, the strongest level since June 11.
The September contract settled at USD3.173 a pound on Wednesday, unchanged for the day.
Copper prices were likely to find support at USD3.148 a pound, the low from August 6 and resistance at USD3.284 a pound, the high from June 10.
Market sentiment improved after official trade data released earlier showed that Chinese exports rose 5.1% from a year earlier in July, beating expectations for a 3% increase and following a 3.1% drop in June.
The data showed that imports surged 10.9%, blowing past forecasts for a 2.1% increase and following a 0.7% decline in June.
The country’s trade surplus narrowed to USD17.8 billion for the month from a surplus of USD27.1 billion in June.
The upbeat report eased concerns over a slowdown in the world’s second-largest economy and biggest consumer of the industrial metal.
Market players now looked ahead to a raft of Chinese economic data on Friday, including reports on inflation, industrial production and retail sales.
A broadly weaker U.S. dollar also supported gains. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 81.17, the lowest level since June 19.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Copper traders awaited the release of a weekly report on U.S. initial jobless claims later in the trading day, a data point that will be scrutinized for its potential impact on the Fed's monetary policy stance.
Investors have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Cleveland Fed President Sandra Pianalto said Wednesday there has been “meaningful improvement” in the labor market and that tapering may be warranted if it continues to strengthen.
Her comments echoed similar remarks made by Chicago Fed President Charles Evans and Dallas Fed President Richard Fisher earlier in the week.
Elsewhere on the Comex, gold for December delivery added 0.3% to trade at USD1,289.50 a troy ounce, while silver for September delivery rose 0.95% to trade at USD19.69 a troy ounce.
Moves in the gold and silver price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.