Copper jumps 2% on speculation Beijing will introduce stimulus to boost economy
Copper prices rose on Thursday, as a recent series of downbeat Chinese economic data fuelled speculation China's authorities will have to introduce further stimulus measures to boost growth
and combat deflation.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption in 2014, according to Investing.com.
On the Comex division of the New York Mercantile Exchange, copper for May delivery jumped 5.0 cents, or 1.9%, to trade at $2.656 a pound during European morning hours. Prices held in a range between $2.599 and $2.662. Futures were likely to find support at $2.592, the low from March 9, and resistance at $2.669, the high from March 10.
Yesterday copper shed 1.8 cents, or 0.69%, to settle at $2.606 after data showed that China's factory output grew less than expected in the first two months of the year.
Also on the Comex, gold futures for April delivery tacked on $8.60, or 0.75%, to trade at $1,159.20 a troy ounce, while silver futures for May delivery rose 24.0 cents, or 1.56% to trade at $15.60 an ounce.
Investors awaited U.S. data on jobless claims and retail sales later in the trading day for further clues on the strength of the economy and the timing of a rate hike in the U.S.
Last week’s stronger-than-forecast nonfarm payrolls report for February strengthened expectations for a mid-year rate hike and investors were looking ahead to next week’s policy statement to see if it would drop its reference to being patient before raising rates.
Hopes 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.
