Investing.com - Copper futures edged mildly higher on Wednesday, as global markets rebounded after an aggressive rate hike by the Turkish central bank and ahead of a policy announcement by the Federal Reserve later in the day.
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On the Comex division of the New York Mercantile Exchange, copper futures for March delivery hit a session high of USD3.268 a pound, before trimming gains to trade at USD3.262 during European morning trade, up 0.3%.
The March copper contract fell to USD3.246 a pound on Tuesday, the lowest since December 9, before paring losses to settle at USD3.253 a pound, down 0.18%.
Copper futures were likely to find support at USD3.246 a pound, the low from January 28 and resistance at USD3.287 a pound, the high from January 27.
Appetite for riskier assets improved after Turkey’s central bank announced aggressive rate hikes overnight in an effort to stem the lira’s decline.
Turkey''s central bank raised its overnight lending rate to 12% from 7.75% and its repurchase rate to 10% from 4.5% in its first emergency meeting since 2011.
The move eased concerns over emerging markets, following a broad based selloff last Friday, triggered by worries over the impact of reduction in Fed stimulus and concerns over a possible slowdown in China.
Market players prepared for the outcome of the Fed’s policy meeting later in the day, amid expectations for a USD10 billion reduction in the central bank’s now USD75-billion-a-month stimulus program.
The policy meeting will mark the last for outgoing Fed Chairman Ben Bernanke, as current Vice Chair Janet Yellen prepares to take over. The central bank announced its first cut to its USD85 billion in monthly bond purchases in December, citing an improving economy.
Elsewhere on the Comex, gold for April delivery inched up 0.3% to trade at USD1,253.90 a troy ounce, while silver for March delivery added 0.5% to trade at USD19.60 a troy ounce.