Copper futures were little changed near a seven-week high on Tuesday, as market players prepared for the start of the Federal Reserve’s policy meeting later in the day and news on the fate of the central bank’s bond-buying program.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.329 a pound during European morning trade, down 0.02%. Comex copper prices climbed to a session high of USD3.335 a pound earlier, the strongest level since October 22.
Copper prices were likely to find support at USD3.300 a pound, the low from December 16 and resistance at USD3.353 a pound, the high from October 22.
The March contract settled 0.53% higher on Monday to end at USD3.329 a pound after upbeat manufacturing data out of the euro zone and the U.S. boosted optimism over the global economy.
Investors remained cautious ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, with some expecting the central bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Markets were turning their attention to U.S. inflation data due out later in the session amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer.
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 dropped 0.6% to trade at USD1,237.20 a troy ounce, while silver for March delivery shed 0.65% to trade at USD19.96 a troy ounce.
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