IV:Copper futures fluctuate ahead of U.S. pending home sales data
Investing.com - Copper futures swung between small gains and losses on Monday, 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 stimulus.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.221 a pound during European morning trade, up 0.1%.
Comex copper prices traded in a range between USD3.206 a pound, the daily low and a session high of USD3.270 a pound.
The March contract settled 0.61% higher on Friday to end at USD3.218 a pound.
Copper prices were likely to find support at USD3.188 a pound, the low from November 22 and resistance at USD3.275 a pound, the high from November 11.
The U.S. was release data on pending home sales for October 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 Federal Reserve to scale back stimulus.
Minutes from the Fed’s October meeting published last week revealed that the central bank could start scaling back its 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.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.25% to trade at 80.89.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere on the Comex, gold for February delivery fell 1% to trade at USD1,232.25 a troy ounce, the lowest since July 8, while silver for March delivery shed 0.7% to trade at USD19.76 a troy ounce, the weakest level since August 8.
The safe-haven appeal of the precious metals was dampened after Iran agreed to limit its nuclear program in exchange for sanctions relief in a deal reached over the weekend in Geneva.
