Investing.com - Copper futures fell to a three-week low on Thursday, as investors awaited Federal Reserve''s Chair Janet Yellen''s Senate testimony later in the day, as well as the release of key U.S. economic data.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery fell to a session low of $3.189 a pound, the weakest since February 5.
Copper prices last traded at $3.204 a pound during European morning hours, down 0.35%. The May copper contract lost 0.36% on Wednesday to settle at $3.215 a pound.
Futures were likely to find support at $3.185 a pound, the low from February 5 and resistance at $3.240 a pound, the high from February 26.
Investors were looking ahead to testimony by Fed Chair Janet Yellen later in the session after a recent spate of disappointing U.S. economic indicators raised some doubts over whether the central bank will maintain the current pace of reductions to its stimulus program.
Ms. Yellen was expected to reiterate that the U.S. central bank would continue to roll back its asset purchase program, as long as the economy improves as expected.
The U.S. was also due to release data on durable goods orders, a leading indicator of production, and the weekly report on initial jobless claims later in the session.
A recent series of downbeat U.S. economic data have sparked concerns that the recovery has lost momentum since the end of last year as inclement winter weather weighed on growth.
The U.S. is second behind China in global copper demand.
Meanwhile, lingering concerns over the health of China’s economy also dampened sentiment. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper prices have been under pressure in recent sessions amid ongoing concerns that attempts by policymakers in Beijing to cool China’s property sector and rein in lending will reduce demand for the industrial metal.
A cooler property sector not only weighs on demand for copper as construction material, but also dampens consumption from the home appliances sector.
Elsewhere on the Comex, gold for April delivery added 0.2% to trade at $1,330.70 a troy ounce, while silver for May delivery rose 0.65% to trade at $21.42 a troy ounce.
Please LIKE our Facebook page - it makes us stronger: