IV:Copper wavers as U.S. debt talks remain in focus
Investing.com - Copper futures fluctuated between small gains and losses on Tuesday, 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 USD3.293 a pound during European morning trade, down 0.3%.
Copper prices traded in a range between USD3.288 a pound, the daily low and a session high of USD3.307 a pound.
The December contract settled 1.04% higher at USD3.303 a pound on Monday.
Copper prices were likely to find support at USD3.227 a pound, the low from October 11 and resistance at USD3.321 a pound, the high from October 8.
Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
Prices remained supported after trade data over the weekend showed that copper imports from top consumer China surged to the highest level since March 2012 last month.
According to China's General Administration of Customs, inbound copper shipments rose to an 18-month high of 457,847 metric tons in September, 18% higher than copper imports in the previous month.
Total imports of copper in the third quarter rose 21.4% over the preceding quarter to 1.26 million tonnes, according to the customs data.
Copper traders now looked ahead to a raft of Chinese economic data later in the week, including reports on gross domestic product, industrial production and retail sales.
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 tumbled 1.7% to trade at a three-month low of USD1,255.00 a troy ounce, while silver for December delivery plunged 3.2% to trade at USD20.67 a troy ounce.
