Copper prices dipped on Tuesday, as fears over Greece kept investors cautious, while markets looked ahead to congressional testimony by Federal Reserve Chair Janet Yellen later in the day.
On the Comex division of the New York Mercantile Exchange, copper for May delivery shed 0.9 cents, or 0.36%, to trade at $2.577 a pound during European morning hours.
Yesterday copper dropped to $2.561, the lowest since February 17, before settling at $2.586, down 0.4 cents, or 0.17%. Futures were likely to find support at the $2.550, the low from February 17, and resistance at $2.617, the high from February 20.
The
Eurogroup is expected to ponder over Greece's revised list of reform proposals
after the debt-strapped country submitted a list of proposed economic
reforms to Brussels around midnight on Monday.
The reforms must be approved by the country’s lenders in order for Greece to secure the four-month extension to its €240 billion bailout.
In the meantime, market players looked ahead to testimony from Federal Reserve Chairwoman Janet Yellen before the Senate Banking Committee in Washington later in the day, with market participants watching for any indication on when U.S. interest rates may start to rise.
Last week’s minutes of the Fed’s January meeting were milder than expected, showing that some officials thought that raising rates too soon could weigh on the U.S. economic recovery.
A stronger greenback usually puts copper under pressure, as it makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere on the Comex, gold futures for April delivery declined $5.70, or 0.47%, to trade at $1,195.10 a troy ounce, while silver futures for May delivery dipped 2.9 cents, or 0.18% to trade at $16.27 an ounce.
Gold has been under pressure in recent weeks amid ongoing expectations for the Federal Reserve to start raising interest rates later this year.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
