IV:Copper futures inch lower; China reform plans limit losses
Investing.com - Copper futures inched lower on Monday, but prices of the industrial metal remained supported after China outlined sweeping economic reforms.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.169 a pound during European morning trade, down 0.1%.
Comex copper prices traded in a range between USD3.162 a pound, the daily low and a session high of USD3.175 a pound.
The December contract settled 0.335 higher on Friday to end at USD3.171 a pound.
Copper prices were likely to find support at USD3.143 a pound, the low from November 15 and resistance at USD3.184 a pound, the high from November 15.
Beijing late Friday released a reform plan that called for opening the financial sector to more foreign investment and a revamp of initial public offerings, particularly for state-owned companies.
The document came after the Chinese Communist Party leadership ended a meeting on Tuesday last week with only abroad outline of reform plans.
Meanwhile, ongoing uncertainty over the direction of U.S. monetary policy kept investors in a cautious mood.
Investors were turning their attention to the minutes of the Federal Reserve’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
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.
Elsewhere on the Comex, gold for December delivery shed 0.3% to trade at USD1,283.70 a troy ounce, while silver for December delivery declined 0.45% to trade at USD20.63 a troy ounce.
