IV:Copper futures edge higher before U.S. jobless claims data
Investing.com - Copper futures inched higher on Thursday, as investors looked ahead to key U.S. economic data due later in the session to gauge the strength of the economy and the need for further stimulus.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.170 a pound during European morning trade, up 0.35%.
Comex copper prices traded in a range between USD3.143 a pound, the daily low and a session high of USD3.171 a pound.
The December contract settled 0.06% higher on Wednesday to end at USD3.159 a pound.
Copper prices were likely to find support at USD3.124 a pound, the low from November 19 and resistance at USD3.184 a pound, the high from November 15.
The U.S. was release data on producer price inflation, as well as the weekly report on initial jobless claims and data manufacturing activity from the Philly Fed later in the day.
Market players 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 scale back stimulus.
Minutes from the Federal Reserve’s October meeting published Wednesday triggered fresh concerns that the central bank could begin to slow its bond-purchasing program as soon as December.
According to the minutes, policymakers said they could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
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.
Copper prices shrugged off the release of disappointing manufacturing data out of top consumer China earlier in the session.
China’s HSBC manufacturing index ticked down to 50.4 in November, from a final reading of 50.9 in October, missing forecasts for a reading of 50.8.
Elsewhere on the Comex, gold for December delivery fell 0.8% to trade at USD1,248.20 a troy ounce, while silver for December delivery shed 0.3% to trade at USD20.00 a troy ounce.
