Investing.com - Copper futures regained strength on Thursday, as indications the U.S. economic recovery was gaining momentum strengthened appetite for growth-linked assets.
Copper prices struggled for upside traction due to a slightly stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, traded at 83.23, just below the previous session’s seven-month high of 83.33.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.538 a pound during European morning trade, up 0.35% on the day.
New York-traded copper prices rose by as much as 0.7% earlier in the day to hit a session high of USD3.549 a pound.
Concerns over a possible slowdown in China amid renewed government efforts to curb soaring property prices also kept a lid on gains.
A cooler property sector not only weighs on demand for copper as construction material, but also dampens consumption from the home appliances sector.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper traders looked ahead to the release of a weekly government report on U.S. initial jobless claims later in the day, as investors search for further signs the U.S. economic recovery is gaining momentum.
Data on Wednesday showed that U.S. retail sales rose 1.1% in February, beating expectations for a 0.5% increase. Core retail sales, which exclude automobile sales, also rose more-than-expected, climbing 1.0% compared to expectations for a 0.2% gain.
The positive retail sales data fuelled optimism that the recovery in the U.S. is gaining traction after a report last week showed that the economy added more jobs than expected in February, bringing the unemployment rate to a four-year low of 7.7%.
Meanwhile, in Europe, European Union leaders were set to begin a two-day economic summit in Brussels later in the day.
Elsewhere on the Comex, gold for April delivery dipped 0.15% to trade at USD1,585.80 a troy ounce, while silver for May delivery shed 0.55% to trade at USD28.80 a troy ounce.
Copper prices struggled for upside traction due to a slightly stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, traded at 83.23, just below the previous session’s seven-month high of 83.33.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.538 a pound during European morning trade, up 0.35% on the day.
New York-traded copper prices rose by as much as 0.7% earlier in the day to hit a session high of USD3.549 a pound.
Concerns over a possible slowdown in China amid renewed government efforts to curb soaring property prices also kept a lid on gains.
A cooler property sector not only weighs on demand for copper as construction material, but also dampens consumption from the home appliances sector.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper traders looked ahead to the release of a weekly government report on U.S. initial jobless claims later in the day, as investors search for further signs the U.S. economic recovery is gaining momentum.
Data on Wednesday showed that U.S. retail sales rose 1.1% in February, beating expectations for a 0.5% increase. Core retail sales, which exclude automobile sales, also rose more-than-expected, climbing 1.0% compared to expectations for a 0.2% gain.
The positive retail sales data fuelled optimism that the recovery in the U.S. is gaining traction after a report last week showed that the economy added more jobs than expected in February, bringing the unemployment rate to a four-year low of 7.7%.
Meanwhile, in Europe, European Union leaders were set to begin a two-day economic summit in Brussels later in the day.
Elsewhere on the Comex, gold for April delivery dipped 0.15% to trade at USD1,585.80 a troy ounce, while silver for May delivery shed 0.55% to trade at USD28.80 a troy ounce.