Investing.com - Copper futures bounced off a two-week low on Wednesday, as the U.S. dollar weakened amid ongoing uncertainty over the direction of U.S. monetary policy. On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.271 a pound during European morning trade, up 0.4%. Copper prices traded in a range between USD3.251 a pound, the session low and a daily high of USD3.275 a pound. The December contract fell to USD3.243 a pound on Tuesday, the weakest level since October 25, before clawing back to settle at USD3.258 a pound, up 0.17%. Copper prices were likely to find support at USD3.234 a pound, the low from October 25 and resistance at USD3.308 a pound, the high from November 4. Copper’s gains came as the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, declined 0.25% to trade at 80.59, the lowest since November 1. A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies. Market players looked ahead to the release of key U.S. economic data later in the week to help assess the timing for a reduction in the Federal Reserve’s bond-purchasing program. The U.S. is set to release preliminary data on third quarter economic growth on Thursday, while October’s highly-anticipated nonfarm payrolls report is scheduled for Friday. 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. Investors will also be awaiting the outcome of Thursday’s European Central Bank policy meeting, amid growing expectations that the central bank will cut rates in order to safeguard the economic recovery in the region. The European Commission cut its forecast for euro zone growth on Tuesday and said that unemployment in the region remains at unacceptably high levels. Europe as a region is third in global demand for the industrial metal. Meanwhile, copper traders also looked ahead to an important Communist Party meeting in China later in the week. China’s top Communist Party officials will meet in Beijing from November 9-12, amid expectations that the country’s new government will unveil economic reforms. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Elsewhere on the Comex, gold for December delivery rose 0.7% to trade at USD1,316.80 a troy ounce, while silver for December delivery rallied 1.3% to trade at USD21.91 a troy ounce.

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