Copper futures under pressure as Greece jitters weigh

Investing.com - Copper prices edged lower on Thursday, ahead of a meeting of European Union leaders later in the session as Greece continued last-minute efforts to avert a default.

Investors nervously eyed developments in Greece’s debt talks ahead of the looming deadline for Greece to repay €1.6 billion to the International Monetary Fund on June 30. If Greece misses the payment it risks going into default, which could trigger the country’s exit from the euro area.

Negotiations faltered on Wednesday after Greece’s creditors rejected some of its latest proposed reforms and presented the government with counter proposals for a deal to unlock bailout funds.

Discussions were expected to resume in Brussels on Thursday morning, ahead of a Eurogroup meeting of euro zone finance ministers scheduled later in the day.

Copper for July delivery on the Comex division of the New York Mercantile Exchange lost 2.5 cents, or 0.94%, to trade at $2.600 a pound during European morning hours. Futures were likely to find support at $2.568, the low from June 23, and resistance at $2.649, the high from June 24.

A day earlier, copper hit $2.649, the most since June 16, before closing at $2.624, up 1.1 cents, or 0.44% on hopes for an increase in demand for the red metal.

Elsewhere, gold futures for August delivery inched up 30 cents, or 0.03%, to trade at $1,173.20 a troy ounce, while silver futures for July delivery shed 7.8 cents, or 0.49% to trade at $15.77 an ounce.

Market participants were looking ahead to reports on U.S. consumer spending and weekly jobless claims due out later in the day amid ongoing speculation over prospects for higher interest rates.

Data on Wednesday showed that a contraction in U.S. first quarter economic growth was not a severe as initially estimated. The Commerce Department said the economy contracted at an annual rate of 0.2% in the three months to March, lower than the initial estimate for a 0.7% contraction reported last month.

The upward revision to was due in large part to stronger consumer spending, which was revised up to 2.1% from the initial estimate of 1.8%.

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.