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Copper holds near 4-month high after China inflation data

Published 07/09/2014, 05:02 AM
Updated 07/09/2014, 05:02 AM
Copper trades near 4-month high after China CPI data

Investing.com - Copper futures held near a four-month high on Wednesday, despite data showing that consumer price inflation cooled slightly more than expected in June.

On the Comex division of the New York Mercantile Exchange, copper for September delivery tacked on 0.25%, or 0.8 cents, to trade at $3.265 a pound during European morning hours. Prices held in a range between $3.247 and $3.269 a pound.

Copper prices rose to $3.294 a pound on Tuesday, the most since February 21, before turning lower to settle at $3.257, down 0.12%, or 0.4 cents.

Futures were likely to find support at $3.237 a pound, the low from July 7 and resistance at $3.294 a pound, the high from July 8.

Data released earlier showed that consumer price inflation in China rose 2.3% in June from a year earlier, slowing from 2.5% in May and compared to expectations for 2.4%.

A separate report showed that producer price inflation declined 1.1% last month after falling 1.4% in May. Analysts had expected producer prices to fall 1% in June.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.

Elsewhere on the Comex, gold for August delivery inched up 0.59%, or $7.80, to trade at $1,324.30 a troy ounce, while silver for September delivery advanced 0.67%, or 14.0 cents, to trade at $21.15 an ounce.

Investors looked ahead to the minutes of the Federal Reserve’s June policy meeting later in the day, after last week’s robust nonfarm payrolls data revived speculation over when the central bank may start to raise interest rates.

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However, market players believe that the Fed will stick to its dovish stance on monetary policy amid concerns over slow growth in inflation and wages.

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