Copper climbed on Monday, underpinned by growing expectations for further monetary easing in China.
On the Comex division of the New York Mercantile Exchange, copper for May delivery ticked up 1.5 cents, or 0.56%, to trade at $2.679 a pound during European morning hours. Prices held in a range between $2.651 and $2.684.
Futures were likely to find support at $2.598, the low from March 12, and resistance at $2.694, the high from March 3.
Last week, Comex copper rose 4.9 cents, or 2.07%, as a recent batch of weaker than expected Chinese economic data fuelled speculation policymakers in Beijing will have to introduce further stimulus measures spur growth.
On Sunday, Chinese Premier Li Keqiang said that policymakers are prepared to take action to incentivise the economy if needed and that the country has plenty of scope to adjust policies in order to boost growth and fight off deflation.
The country is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold futures for April delivery tacked on $4.20, or 0.36%, to trade at $1,156.60 a troy ounce, while silver futures for May delivery rose 15.1 cents, or 0.97% to trade at $15.64 an ounce.
Investors are expecting Wednesday’s Federal Reserve statement to see if it would drop its reference to being "patient" before raising rates, which would be a sign that the central bank could raise rates as early as its June monetary policy meeting.
Hopes for higher borrowing rates going forward are considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
At the same time, the common currency slid as low as $1.0471 early in the Asian session, a level not seen since, but then rebounded to $1.0537, up 0.4% on the day.
Sentiment on the euro remained vulnerable amid the diverging monetary policy stance between the Federal Reserve and the European Central Bank.
