Investing.com - Copper futures declined modestly on Tuesday, as investors remained cautious ahead of the Federal Reserve's policy meeting due to begin later in the day.
On the Comex division of the New York Mercantile Exchange, copper for September delivery eased down 0.16%, or 0.5 cents, to trade at $3.238 a pound during European morning hours. Prices held in a tight range between $3.236 and $3.255 a pound.
Copper ended Monday’s session up 0.09%, or 0.3 cents, to settle at $3.243 a pound. Futures were likely to find support at $3.202, the low from July 24 and resistance at $3.279, the high from July 25.
Traders looked ahead to the Fed’s monetary policy statement due on Wednesday. The central bank is likely to stick to its timetable to taper its monthly bond purchases by another $10 billion to a total of $25 billion a month.
Meanwhile, Wednesday’s preliminary estimate on second quarter economic growth and Friday’s U.S. jobs report for July were both expected to indicate that the economic recovery is continuing.
Elsewhere on the Comex, gold for December delivery tacked on 0.5%, or $6.50, to trade at $1,312.30 a troy ounce, while silver for September delivery rallied 1.05%, or 21.6 cents, to trade at $20.78 an ounce.
Gold remained supported as tensions between Russia and the West over the situation in Ukraine remained high, while fighting between Israel and Hamas militants in Gaza also remained in focus.
The precious metal is often seen as a haven investment in times of geopolitical uncertainty.