Forexpros - Copper futures were higher during European morning hours on Thursday, holding on to gains after Italy saw borrowing costs ease at an auction of long-term government debt earlier in the day. Supportive comments from Chinese Premier Wen Jiabao helped the industrial metal to gains during Asian trading hours. Market players also looked ahead to a speech by Federal Reserve chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming on Friday. On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.471 a pound during European morning trade, gaining 0.65%. Earlier in the day, prices rose by as much as 0.8% to hit a session high of USD3.476 a pound. Prices hit a low of USD3.428 a pound on Wednesday, the lowest since August 21. Italy’s Treasury sold EUR2.5 billion worth of five-year government bonds at an average yield of 4.73% earlier in the day, down from 5.29% at a similar auction last month. The country also sold EUR4.0 billion of 10-year debt at an average yield of 5.82%, down from 5.96% at a similar auction last month. Growing expectations that the European Central Bank will implement policy measures to help stabilize the region’s sovereign debt markets at its next policy meeting in early September has helped bring down funding costs for troubled peripheral members Italy and Spain in recent weeks. In an article published in German’s Die Zeit newspaper Wednesday, ECB President Mario Draghi said that the central bank needs to employ "exceptional measures" with monetary policy, while acting within its mandate. The ECB president had been due to speak at the Jackson Hole summit on Saturday, one day after Bernanke’s speech, but he pulled out, citing his "heavy workload�. Copper prices were higher during Asian trading hours after Chinese Premier Wen said his country planned to continue buying European sovereign debt. Wen also said China remained confident in the future of the single currency and would seek closer ties with the European Central Bank. The comments came following a meeting with German Chancellor Angela Merkel in Beijing earlier in the day. Copper traders continued to eye a speech by Federal Reserve Chairman Ben Bernanke at the central bank’s annual symposium in Jackson Hole on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures. Bernanke's speech at Jackson Hole precedes the central bank’s two-day policy meeting beginning September 12, and he has used the event in the previous two years to flag the Fed's intention for more easing. Copper prices have rallied in recent weeks, climbing nearly 7% since August 2, amid growing hopes policymakers in the U.S., Europe and China will introduce fresh easing measures to prop up their respective economies. Elsewhere on the Comex, gold for October delivery declined 0.15% to trade at USD1,657.95 a troy ounce, while silver for December delivery fell 0.5% to trade at USD30.76 a troy ounce.

Source