IV:Copper futures fall 1% ahead of U.S. jobless claims data
Investing.com - Copper futures fell 1% to hit a one-week low on Thursday, as investors looked ahead to weekly data on U.S. jobless claims later in the session for indications on the strength of the economic recovery and the need for stimulus from the Federal Reserve.
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.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.225 a pound during European morning trade, down 1%. The December contract settled 0.17% lower at USD3.257 a pound on Wednesday.
Copper prices fell by as much as 1.1% earlier to hit a session low of USD3.224 a pound, the weakest level since September 5.
Copper prices were likely to find short-term support at USD3.221 a pound, the low from September 5 and resistance at USD3.296 a pound, the high from September 10.
The industrial metal came under pressure amid speculation the Fed will start tapering its bond-buying program at its upcoming policy meeting next week.
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 tumbled 1.65% to trade at USD1,341.30 a troy ounce, while silver for December delivery plunged 2.2% to trade at USD22.66.
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.
