IV:Copper futures little changed near 3-week low; U.S. debt talks in focus
Investing.com - Copper futures swung between small gains and losses near the previous session’s three-week low on Thursday, as investors assessed the potential for an agreement to raise the U.S. debt ceiling and avert default before the October 17 deadline.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.231 a pound during European morning trade, up 0.01%.
Copper prices traded in a range between USD3.222 a pound, the daily low and a session high of USD3.243 a pound.
The December contract settled down 1.87% at USD3.231 a pound on Wednesday, after hitting a low of USD3.221 a pound, the weakest level since September 18.
Copper prices were likely to find support at USD3.206 a pound, the low from September 18 and resistance at USD3.296 a pound, the high from October 9.
Hopes that the partial U.S. government shutdown may soon end received a boost from news that House Republican leaders were to hold their first meeting with President Barack Obama since the shutdown began later on Thursday.
President Obama has demanded Republicans raise the U.S. debt ceiling and reopen the government before negotiations on future fiscal policy can take place. The U.S. risks a sovereign debt default if the government borrowing limit is not raised by 17 October.
Meanwhile, minutes of the Federal Reserve’s September meeting published on Wednesday showed that most policymakers were still in favor of scaling back its stimulus program this year.
The central bank's decision not to begin tapering its USD85-billion-a-month bond-buying program was a "close call," fuelling expectations that the bank will begin to roll back bond purchases in the next few months.
President Obama announced his nomination of Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank on Wednesday, easing uncertainty over U.S. monetary policy.
Copper traders looked ahead to the release of key Chinese economic data, with the Asian nation scheduled to publish trade and inflation numbers over the weekend and early next week.
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 fell 0.7% to trade at USD1,298.10 a troy ounce, while silver for December delivery lost 0.4% to trade at USD21.80 a troy ounce.
