Copper futures lower on Fed jitters, China data in focus Copper futures edged lower on Wednesday, as investors re-examined expectations on how soon the Federal Reserve may start to pull back its asset purchase program. On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.163 a pound during European morning trade, down 0.3%. Nymex copper prices held in a range between USD3.146 a pound, the daily low and a session high of USD3.180 a pound. The September contract settled up 0.15% at USD3.173 a pound on Tuesday. Copper prices were likely to find support at USD3.132 a pound, the low from August 2 and resistance at USD3.208 a pound, Tuesday’s high. Appetite for the industrial metal weakened amid concerns the Federal Reserve will taper its bond-buying program in the coming months. A government report showed on Tuesday that the U.S. trade deficit narrowed by 22.4% to a seasonally adjusted USD34.2 billion in June, the lowest level since October 2009. Investors 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 reduce its bond purchases. Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
Posted on: Wed, 07 Aug 2013 12:49:20 +0000
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