Copper futures fluctuated between small gains and losses near a five-week high on Wednesday, as traders awaited updates from China’s annual Central Economic Work Conference, which began on Tuesday, where policymakers will set economic growth targets and policy priorities for 2014.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.272 a pound during European morning trade, up 0.15%. Comex copper prices traded in a range between USD3.257 a pound and USD3.275 a pound.
The March contract jumped to USD3.279 a pound on Tuesday, the highest since November 4, before ending at USDd3.266 a pound, up 0.26%.
Copper prices were likely to find support at USD3.247 a pound, the low from December 10 and resistance at USD3.308 a pound, the high from November 4.
Market analysts expect the Chinese government to maintain its targets of 7.5% for growth and 3.5% for inflation next year. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold and silver futures edged lower as investors locked in gains from the previous session’s sharp rally which took prices to the highest level in three weeks.
Gold for February delivery shed 0.5% to trade at USD1,254.50 a troy ounce, while silver for March delivery dipped 0.25% to trade at USD20.26 a troy ounce.
Bullion rallied on Tuesday as the U.S. dollar weakened amid doubts over whether the Federal Reserve will start to reduce stimulus measures at next week’s policy meeting.
The central bank is scheduled to meet December 17-18 to review the economy and assess monetary policy.
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