Investing.com - Copper futures fluctuated between modest gains
and losses on Monday, as market sentiment remained mildly supported
after Friday's upbeat U.S. economic growth data, while lingering
concerns over higher borrowing costs in China weighed.
On the Comex division of the New York Mercantile Exchange, copper
futures for March delivery traded at USD3.306 a pound during
European morning trade, down 0.05%. Comex copper prices traded in a
range between USD3.299 a pound and USD3.315 a pound.
Copper prices were likely to find support at USD3.291 a pound, the
low from December 20 and resistance at USD3.323 a pound, the high
from December 19.
The March contract settled 0.38% higher on Friday to end at
USD3.308 a pound.
The Commerce Department said Friday that the U.S. economy expanded
by 4.1% in the third quarter, well above initial estimates for 3.6%
growth, adding to signs that the economic recovery is gaining
Also, the International Monetary Fund on Sunday raised its forecast
for 2014 U.S. economic growth to 2.5%, up from the 1.6% it expects
the country to grow this year.
IMF Managing Director Christine Lagarde said on NBC's "Meet the
Press" said that the recent budget deal in Washington and the
Federal Reserve's decision to taper its bond buying program eased
doubts about the future.
The U.S. is second behind China in global copper demand.
Meanwhile, investors continued to fret over tightening liquidity
conditions and rising borrowing costs in the Chinese financial
The benchmark seven-day repo rate jumped to 9.8%, the highest since
June. Market players have remained cautious over the level of bad
debt at Chinese banks, particularly when interbank lending rates
China is the world's largest copper consumer, accounting for almost
40% of world consumption last year.
Elsewhere on the Comex, gold for February delivery fell 0.8% to
trade at USD1,194.00 a troy ounce, while silver for March delivery
declined 0.5% to trade at USD19.35 a troy ounce.
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