Investing.com - Copper futures rose to the highest levels of the session on Wednesday, after data showed that the euro zone’s economy grew for the first time in 18 months in the second quarter, as the region exited a recession. On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.330 a pound during European morning trade, up 0.4%. Nymex copper prices traded in a range between USD3.295 a pound, the daily low and a session high of USD3.333 a pound. Copper futures rose to a three-month high of USD3.342 a pound on Tuesday. Copper prices were likely to find support at USD3.242 a pound, the low from August 9 and resistance at USD3.369 a pound, the high from June 6. The September contract settled up 0.4% at USD3.317 a pound on Tuesday amid growing optimism over the strength of the global economy. Copper is sensitive to the economic growth outlook because of its widespread uses across industries. In the euro zone, preliminary data released earlier showed that the region’s gross domestic product grew by a seasonally adjusted 0.3% in the second quarter, above expectations for growth of 0.2%. The upbeat data came after a report showed that France’s economy expanded 0.5% in the three months to June, following two consecutive quarters of contraction. Economists had forecast growth of 0.2% quarter-on-quarter. A separate report showed that Germany’s economy expanded by 0.7% after growing 0.1% in the first quarter. Economists had forecast quarter-on-quarter growth of 0.6%. Europe as a region is third in global demand for the industrial metal. Gains were limited amid ongoing uncertainty over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases. U.S. retail sales data on Tuesday reinforced the view that the economic recovery is strong enough for the Fed to begin tapering its USD85 billion-a-month asset purchase program later this year. The Commerce Department said that retail sales rose for the fourth successive month in July, rising 0.2%, while core retail sales, which exclude automobile sales, rose at the fastest pace in seven months, climbing 0.5%. Investors have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. Atlanta Fed President Dennis Lockhart said Tuesday it was still too early to detail plans for a tapering, but did not rule out the possibility of it starting next month. The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Elsewhere on the Comex, gold for December delivery added 0.3% to trade at USD1,324.00 a troy ounce, while silver for September delivery rose 0.7% to trade at USD21.49 a troy ounce. Moves in the gold and silver price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.

Source