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Copper trades near 10-week high after Japan, Germany GDP data

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Investing.com -

Investing.com - Copper prices traded near the previous session's ten-week high on Thursday, following the release of better than expected data Japanese and German economic growth data.

On the Comex division of the New York Mercantile Exchange, copper for July delivery advanced 0.15%, or 0.5 cents, to trade at $3.165 a pound during European morning hours.

Copper held in a range between $3.143 and $3.170 a pound. Prices rose to $3.178 a pound on Wednesday, the most since March 7, before settling at $3.160, up 0.78%, or 2.4 cents.

Futures were likely to find support at $3.122 a pound, the low from May 14 and resistance at $3.219 a pound, the high from March 7.

Preliminary data released earlier showed that Japan's economy grew by 1.5% in the first three months of the year, beating expectations for growth of 1%. On an annualized basis, the country's gross domestic product rose 5.9% in the first quarter, above forecasts for an increase of 4.2%.

In the euro zone, data released earlier showed that growth in Germany beat forecasts in the first three months of the year, but growth in the French economy stalled.

Official data showed that the euro zone's largest economy expanded 0.8% in the three months to March, beating expectations for 0.7%. The annual rate of growth in Germany rose by 2.5%, ahead of expectations for 2.2%.

At the same time, data showed that French gross domestic product was flat in the first quarter, disappointing expectations for growth of 0.2%, as consumer spending slumped.

Europe as a region is third in global demand for the industrial metal. Copper is sensitive to the economic growth outlook because of its widespread uses across industries.

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.

The Asian is the world's largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold for June delivery dipped 0.05%, or 60 cents, to trade at $1,305.30 a troy ounce, while silver for July delivery eased down 0.12%, or 2.3 cents, to trade at $19.75 an ounce.

Market players looked ahead to key U.S. data later in the session for further indications on the strength of the economy and the need for stimulus.

The U.S. is to release data on initial jobless claims, consumer inflation and industrial production, as well as a report on manufacturing activity in the Philadelphia region later Thursday.

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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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