Investing.com - Copper futures were higher on Wednesday, as the odds of a U.S. military strike against Syria receded and amid ongoing indications China’s economy is strengthening.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.279 a pound during European morning trade, up 0.5%.
Copper prices traded in a range between USD3.265 a pound, the daily low and a session high of USD3.283 a pound. The December contract settled 0.47% lower at USD3.262 a pound on Tuesday.
Copper prices were likely to find support at USD3.221 a pound, the low from September 5 and resistance at USD3.323 a pound, the high from September 3.
In an address to the nation late Tuesday, President Obama said that he had asked Congress to postpone a vote on taking military action against Syria.
Instead, Obama said that he will explore a plan proposed by Russia for Syria to place its chemical weapons under international control.
Indications that the Chinese economy is recovering from a slowdown also aided gains.
Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production increased more-than-forecast last month.
The upbeat report added to optimism over China’s economic outlook after trade data released over the weekend showed that exports rose more-than-expected in August.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, investors continued to speculate over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases following last week’s weaker-than-forecast U.S. jobs report.
Copper traders 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.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
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 fell 0.9% to trade at USD1,373.90 a troy ounce, while silver for December delivery tumbled 2% to trade at USD23.25.
