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Copper rallies to fresh 10-week high on China demand outlook

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Investing.com -

Investing.com - Copper prices rallied to a ten-week high on Wednesday, amid speculation demand from top consumer China will increase in the near-term.

The Asian nation 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 for July delivery advanced 0.92%, or 2.9 cents, to trade at $3.164 a pound during European morning hours.

Prices hit $3.167 a pound earlier in the day, the most since March 7. Copper dipped 0.44%, or 1.4 cents on Tuesday to settle at $3.135 a pound.

Futures were likely to find support at $3.084 a pound, the low from May 12 and resistance at $3.219 a pound, the high from March 7.

Copper prices have been well-supported in recent sessions amid indications China's government will introduce measures to deepen reforms of the nation's capital markets.

Meanwhile, market players looked ahead to the release of U.S. data on producer price inflation due later in the session for further indications on the strength of the economy and the need for stimulus.

Data released Tuesday showed that U.S. retail sales inched up by just 0.1% last month, missing expectations for a 0.4% increase.

Elsewhere on the Comex, gold for June delivery rose 0.49%, or $6.40, to trade at $1,301.20 a troy ounce, while silver for July delivery rallied 1.16%, or 22.6 cents, to trade at $19.77 an ounce.

Investors remained cautious after seven Ukrainian soldiers were killed and seven wounded in an ambush by pro-Russian separatists in eastern Ukraine on Tuesday, stoking fears that the crisis will further escalate and drag the U.S. deeper into the standoff.

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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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