Copper futures move off 7-week high with Fed, Bernanke in focus
Investing.com
Published Dec 18, 2013 05:25AM ET
Copper edges lower ahead of FOMC outcome
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.312 a pound during European morning trade, down 0.3%. Comex copper prices traded in a range between USD3.303 a pound and USD3.323 a pound.
Copper prices were likely to find near-term support at USD3.300 a pound, the low from December 16 and resistance at USD3.335 a pound, the high from December 17.
The March contract rallied to USD3.335 a pound on Tuesday, the highest since October 22, before turning lower to settle at USD3.321 a pound, down 0.24%.
The Fed will release a policy statement upon the conclusion of its two-day meeting later Wednesday, followed by a press conference by Chairman Ben Bernanke, his final as Fed chief.
Investors remained wary ahead of the outcome of the Fed’s final policy meeting of the year, with some expecting the central bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
However, many believe that policymakers will wait until early next year to start rolling back stimulus, despite recent indications the U.S. economic recovery is deepening.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere on the Comex, gold for February delivery inched up 0.3% to trade at USD1,233.70 a troy ounce, while silver for March delivery added 0.7% to trade at USD19.98 a troy ounce.
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Written By: Investing.com
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