Copper declines, as China markets are closed for holidays and Greece stays in focus

On Thursday copper prices declined in holiday-thinned trade, while market players continued to monitor ongoing negotiations surrounding Greece's bailout program.

On the Comex division of the New York Mercantile Exchange, copper for March delivery shed 1.3 cents, or 0.5%, to trade at $2.602 a pound during European morning hours. Futures were likely to find support at the $2.550, the low from February 17, and resistance at $2.638, the high from February 18.

On Wednesday, copper for March delivery rallied 3.3 cents, or 1.28%, to end at $2.614 a pound.

Markets in China, the world's largest copper consumer, will remain closed until February 24 for the Lunar New Year holiday, removing a key support for prices. China is the world’s largest copper consumer.

Greek authorities were expected to submit a request for an extension of its existing loan agreement with the euro zone, which it differentiates from its bailout, later in the day. The country's current €240 billion bailout is due to expire at the end of the month, fuelling worries the country will run out of money.

Gold futures for April delivery rallied $15.10, or 1.26%, to trade at $1,215.30 a troy ounce, while silver futures for March delivery jumped 31.3 cents, or 1.92% to trade at $16.57 an ounce.

Minutes of the Federal Reserve's latest policy meeting released Wednesday revealed that "many" policymakers were in favor of holding interest rates at current levels for longer and that raising rates too soon could weigh on the economic recovery.

Investors pushed back expectations for the first U.S. rate hike to at least the second half of this year.

A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout. Meanwhile, the greenback came under broad selling pressure.

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

Later on Thursday the US is expected to issue a report on manufacturing activity in the Philadelphia region and the weekly government figures on initial jobless claims as investors look for further hints on the strength of the economy.