Investing.com - Copper futures traded near a one-month high on Thursday, after U.S. first quarter growth was revised down sharply, bolstering expectations that the Federal Reserve will keep rates hold for longer.
On the Comex division of the New York Mercantile Exchange, copper for September rose to a session high of $3.177 a pound, the most since May 28, before turning lower to last trade at $3.160 during European morning hours, down 0.21%, or 0.6 cents.
Copper ended Wednesday’s session up 0.67%, or 2.1 cents, to settle at $3.166. Futures were likely to find support at $3.123 a pound, the low from June 25 and resistance at $3.190 a pound, the high from May 28.
The Commerce Department said Wednesday that the U.S. economy shrank at an annual rate of 2.9% in the first three months of the year, compared to the consensus forecast for a decline of 1.7%.
U.S. first quarter GDP was initially reported to have increased by 0.1%, but was subsequently revised to show a contraction of 1.0%.
The difference between the second and third estimate was the largest since records began in 1976, the Commerce Department said.
A separate report showed that U.S. durable goods orders fell 1.0% in May, the first decline in four months.
The weak data indicated that the Federal Reserve may need to keep rates on hold for an extended period to support the recovery.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was at 80.24 just above Wednesday’s five-week lows of 80.17.
Later in the day, the U.S. was to release data on personal income and spending, as well as the weekly report on initial jobless claims.
Elsewhere on the Comex, gold for August delivery shed 0.85%, or $11.30, to trade at $1,311.30 a troy ounce, while silver for September delivery declined 1.21%, or 25.6 cents, to trade at $20.91 an ounce.
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