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Copper futures edge higher on Fed stimulus hopes

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Investing.com - " Copper edged higher on Monday, amid speculation the Federal Reserve will maintain its stimulus program well into 2014 to support the U.S. economy.

On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.283 a pound during European morning trade, up 0.4%.

Copper prices traded in a range between USD3.258 a pound, the daily low and a session high of USD3.285 a pound. The December contract ended up 0.17% on Friday to settle at USD3.269 a pound.

Copper prices were likely to find support at USD3.234 a pound, the low from October 25 and resistance at USD3.334 a pound, the high from October 23.

Investors looked ahead to the Fed's upcoming policy meeting later in the week, amid expectations that the central bank will delay plans to start tapering stimulus until well into next year.

Official data on Friday showed that U.S. core durable goods orders declined for the third consecutive month in September, while another report showed that U.S. consumer sentiment fell to the lowest level in almost a year this month.

The disappointing data underlined expectations that the Fed will maintain its stimulus program amid concerns over the impact of the 16-day U.S. government shutdown on the economic recovery.

Later in the day, the U.S. was to release official data on industrial production, as well as a report on pending home sales.

Copper traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to reduce its bond-purchasing program.

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 0.05% to trade at USD1,351.90 a troy ounce, while silver for December delivery added 0.05% to trade at USD22.65 a troy ounce.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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