Investing.com - Copper futures stabilized on Wednesday, following two consecutive losses, amid speculation policymakers around the world will have to introduce further stimulus measures to support the global economy and boost growth.
On the Comex division of the New York Mercantile Exchange, copper for December delivery tacked on 0.7 cents, or 0.23% to trade at $3.009 a pound during European morning hours.
A day earlier, copper lost 3.7 cents, or 1.23%, to settle at $3.002 a pound after data showed that Japan’s economy fell back into recession in the third quarter, contracting by an annualized 1.6%, following a 7.3% contraction in the previous quarter.
Futures were likely to find support at $2.985, the low from November 14, and resistance at $3.043, the high from November 18.
Concerns over the global economic outlook and the impact on future copper demand prospects have weighed on the industrial metal in recent days.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
Investors looked ahead to the minutes of the Federal Reserve’s October meeting, due out later in the day, for any clues on the possible timing of an interest rate increase.
In addition, the U.S. was to release data on building permits and housing starts for fresh signals on the strength of the economic recovery.
Elsewhere on the Comex, gold futures for December delivery inched up $1.70, or 0.14%, to trade at $1,198.80 a troy ounce, while silver futures for December delivery rose 4.1 cents, or 0.25% to trade at $16.21 an ounce.
Gold prices have been well-supported in recent days as investors returned to the market amid bullish chart signals. Prices are up nearly 6% since hitting a four-and-a-half-year low of $1,130.40 on November 7.
Despite recent gains, gold prices are likely to remain vulnerable in the near-term amid indications a strengthening U.S. economic recovery will force the Fed to start raising interest rates sooner and faster than previously thought.
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.