On Thursday copper prices fluctuated between small gains and losses, as market players closely watched the direction of the greenback.
Key U.S. employment data were also expected as they could provide further clues on the timing of a Federal Reserve rate hike.
On the Comex division of the New York Mercantile Exchange, copper
for July delivery shed 0.2 cents, or 0.07%, to trade at $2.924 a pound
during European morning hours. Futures held in a range between $2.905
and $2.934.
Yesterday copper dipped 0.9 cents, or 0.31%, to close at $2.926. On Tuesday, futures rallied to $2.956, the highest level since November 28. Futures were likely to find support at $2.892, the low from May 4, and resistance at $2.956, the high from May 5.
Prices of the red metal have been well-supported in recent weeks amid mounting speculation policymakers in China will have to introduce further stimulus measures to jumpstart the economy amid lackluster growth.
Since November, the People's Bank of China has introduced a series of stimulus measures, including lowering interest rates twice and cutting the reserve requirement ratios of major banks twice, in order to spur economic activity and boost growth.
Dollar direction
The greenback was vulnerable after payroll processing firm ADP said on Wednesday that U.S. non-farm private employment rose by 169,000 last month, below expectations for an increase of 200,000.
The soft figures spurred fears that the government employment report, due out on Friday, would also fall short of forecasts. The report was expected to show a gain of 224,000 jobs in April, following an increase of just 126,000 in March.
A strong U.S. nonfarm payrolls report was likely to bring forward expectations on when the Federal Reserve will begin to raise rates, while a weak number could weigh on the dollar by undermining the argument for an early rate increase.
Recent batch of soft economic data has prompted many investors to push back expectations on the timing of an initial rate hike by the Fed.
Gold decline
Gold futures for June delivery slumped $8.40, or 0.71%, to trade at $1,181.90 a troy ounce, while silver futures for July delivery slumped 21.8 cents, or 1.32% to trade at $16.28 an ounce.
Gold was pushed lower due to a drop in global government bond prices. The 10-Year U.S. Treasury yield traded near a two-month high, while Germany's 10-Year bond yield hit a fresh 2015 high of 0.673% early on Thursday.
Higher bond yields undermine gold's appeal. Euro zone and U.S. bond yields have been rising in recent sessions as deflation fears have eased amid recovering oil prices and following the introduction of the European Central Bank's massive quantitative easing program.
