Copper futures edged higher in rangebound trade on Tuesday, as investors stuck to the sidelines ahead of testimony to Congress by Federal Reserve Chairman Ben Bernanke on Wednesday.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.150 a pound during European morning trade, up 0.2% on the day.
New York-traded copper prices traded in a range between USD3.133 a pound, the daily high and a session low of USD3.162 a pound.
Market participants were anticipating Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.
Copper prices advanced 2.7% last week after Bernanke said the Fed will continue to maintain accommodative monetary policy for the foreseeable future.
Investors now looked ahead to the release of U.S. data on consumer price inflation and a report on industrial production later in the day.
Data on Monday showed that U.S. retail sales rose less-than-expected June, fuelling fears over a slowdown in the economic recovery.
The Commerce Department said U.S. retail sales rose 0.4% in June, slowing from a 0.5% increase in May and undershooting expectations for a 0.8% increase.
However, a separate report showed that the Empire State manufacturing index rose to a five-month high of 9.5 in July from 7.8 in June. Economists had forecast a reading of 5.0.
Any improvement in U.S. economic activity could scale back expectations for further easing, boosting the dollar and weighing on copper.
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.
Copper’s gains were limited amid lingering concerns over a slowdown in China’s economic growth.
Data released on Monday showed that the world’s second largest economy expanded 7.5% in the second quarter from a year earlier, in line with market expectations and slowing from a 7.7% increase in the preceding quarter.
A separate report showed that industrial production in China rose 8.9% in June, below expectations for a 9.1% increase and following a 9.2% gain the previous month.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
Elsewhere on the Comex, gold for August delivery was little changed to trade at USD1,283.25 a troy ounce, while silver for September delivery shed 0.25% to trade at USD19.79 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.150 a pound during European morning trade, up 0.2% on the day.
New York-traded copper prices traded in a range between USD3.133 a pound, the daily high and a session low of USD3.162 a pound.
Market participants were anticipating Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.
Copper prices advanced 2.7% last week after Bernanke said the Fed will continue to maintain accommodative monetary policy for the foreseeable future.
Investors now looked ahead to the release of U.S. data on consumer price inflation and a report on industrial production later in the day.
Data on Monday showed that U.S. retail sales rose less-than-expected June, fuelling fears over a slowdown in the economic recovery.
The Commerce Department said U.S. retail sales rose 0.4% in June, slowing from a 0.5% increase in May and undershooting expectations for a 0.8% increase.
However, a separate report showed that the Empire State manufacturing index rose to a five-month high of 9.5 in July from 7.8 in June. Economists had forecast a reading of 5.0.
Any improvement in U.S. economic activity could scale back expectations for further easing, boosting the dollar and weighing on copper.
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.
Copper’s gains were limited amid lingering concerns over a slowdown in China’s economic growth.
Data released on Monday showed that the world’s second largest economy expanded 7.5% in the second quarter from a year earlier, in line with market expectations and slowing from a 7.7% increase in the preceding quarter.
A separate report showed that industrial production in China rose 8.9% in June, below expectations for a 9.1% increase and following a 9.2% gain the previous month.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
Elsewhere on the Comex, gold for August delivery was little changed to trade at USD1,283.25 a troy ounce, while silver for September delivery shed 0.25% to trade at USD19.79 a troy ounce.
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