Investing.com - Copper futures edged higher during European morning trade on Wednesday, but gains were limited as investors remained jittery ahead of an upcoming G20 meeting.
Activity was subdued with market participants in China away for the Lunar New Year holiday. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.750 a pound during European morning trade, up 0.2% on the day.
New York-traded copper prices held in between a tight range of USD3.743 a pound, the daily low and a session high of USD3.757 a pound.
Investors remained cautious after a statement by the G7 on Tuesday reaffirmed a commitment to market-determined exchange rates and said that fiscal and monetary policy won't target exchange rates.
The statement came ahead of G20 meeting starting Friday, which is likely to feature discussions on competitive currency devaluations.
Weakness in the U.S. dollar supported prices. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 79.99, the lowest level since February 7.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Indications the global economic recovery was gather pace also lent support.
In a report released earlier, Eurostat said industrial production rose by a seasonally adjusted 0.7% in December, compared to expectations for a 0.2% increase.
It was the first increase in four months, easing concerns over the outlook for economic growth in the single currency bloc
Elsewhere on the Comex, gold for April delivery dipped 0.15% to trade at USD1,647.05 a troy ounce, while silver for March delivery fell 0.1% to trade at USD30.98 a troy ounce.
