Copper falls for first time in three sessions, Fed awaited

Copper falls for first time in three sessions, Fed awaited

28 April 2015, 11:42
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Tuesday marked the first fall for copper prices in three sessions, as investors awaited cues on monetary policy from the Federal Reserve.

Copper price was supported as market players speculated policymakers in China will have to further incentivize the economy amid lackluster growth.

On the Comex division of the New York Mercantile Exchange, copper for July delivery shed 0.4 cents, or 0.14%, to trade at $2.773 a pound during European morning hours. Futures were likely to find support at $2.694, the low from April 24, and resistance at $2.829, the high from April 20.

Investors were anticipating the conclusion of the Federal Reserve's two-day monetary policy meeting on Wednesday, which could provide indications over the timing of a future rate hike.

A recent series of downbeat U.S. economic data undermined optimism over the recovery, spurring speculation the US central bank could delay hiking interest rates until late 2015, instead of mid-year.

Yesterday copper hit $2.790, the strongest level since April 20, before ending at $2.777, up 2.4 cents, or 0.87%, on hopes of more monetary stimulus from China.

The People's Bank of China has introduced a series of stimulus measures since November, including lowering interest rates twice and cutting the reserve requirement ratios of major banks twice, in order to spur economic activity and boost growth.

In other metal trading, gold futures for June delivery slipped $2.30, or 0.19%, to trade at $1,200.90 a troy ounce, while silver futures for July delivery slumped 5.4 cents, or 0.33% to trade at $16.38 an ounce.

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