IV:Copper futures edge higher before U.S. retail sales data, Fed minutes
Investing.com - Copper futures edged higher on Wednesday, as investors looked ahead to key U.S. economic data and the release of the minutes of the Federal Reserve’s October meeting later in the day for further indications on the future course of U.S. monetary policy.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.162 a pound during European morning trade, up 0.15%.
Comex copper prices traded in a range between USD3.154 a pound, the daily low and a session high of USD3.180 a pound.
The December contract fell to USD3.124 a pound on Tuesday, the lowest since August 7, before turning 0.25% higher to settle at USD3.157 a pound.
Copper prices were likely to find support at USD3.124 a pound, the low from November 19 and resistance at USD3.184 a pound, the high from November 15.
The U.S. is set to release a flurry of economic data later in the day, including reports on retail sales, consumer price inflation, existing home sales and business inventories.
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 Fed to scale back stimulus.
Fed Chairman Ben Bernanke reiterated the central bank’s commitment to its highly accommodative monetary policy in comments made at the annual National Economists Club members dinner in Washington on Tuesday.
Bernanke said the Fed is likely to keep interest rates near zero until "perhaps well after" unemployment drops below 6.5%, the bank's threshold for increasing rates.
Bernanke added that a “preponderance of data” would be needed to begin removing accommodation.
Investors are now turning their attention to the minutes of the Fed’s October policy meeting later in the day for further indications on the future course of U.S. monetary policy.
Dovish comments by Fed Chairwoman nominee Janet Yellen last week were seen as supporting the view that the central bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
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 inched down 0.2% to trade at USD1,271.00 a troy ounce, while silver for December delivery added 0.15% to trade at USD20.37 a troy ounce.
