Forexpros – Copper futures regained strength on Tuesday, bouncing off the previous session’s three-day low as markets awaited the outcome a critical Italian parliamentary vote on budget reforms, while hopes for policy easing in China provided further support.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.567 a pound during European morning trade, climbing 0.9%.
It earlier rose by as much as 1.25% to trade at a daily high of USD3.590 a pound.
Italian Prime Minister Silvio Berlusconi’s government faces a key parliamentary vote later in the day, amid growing opposition from within his own political party. Berlusconi resisted calls to resign on Monday, as Italian borrowing costs surged to euro-lifetime highs.
Meanwhile, in Greece officials were to announce the new head of an interim government later in the day, as efforts continued to avert an imminent default by implementing a new bailout program.
Also Tuesday, finance ministers from the European Union member states were to meet in Brussels to discuss the region’s ongoing financial crisis.
Commodity markets were also eyeing Wednesday’s release of monthly inflation data from China. Price increases are expected to soften, fuelling expectations that Beijing could ease monetary policy in the near term.
China is the world’s largest copper user, accounting for nearly 40% of world copper consumption last year.
Meanwhile, chief executive of Southern Copper Corporation Oscar Gonzalez Rocha said Monday that he expects copper prices to average USD4.00 a pound in 2012.
Gonzalez Rocha said that demand from China was expected to remain strong and that prices for the red metal would be supported when the economic problems in Europe are resolved.
Southern Copper is the world’s largest publicly traded copper mining company. It operates mines, smelting and refining facilities in Mexico and Peru.
Elsewhere on the Comex, gold for December delivery rose 0.21% to trade at USD1,794.85 a troy ounce, while silver for December delivery eased down 0.05% to trade at USD34.81 a troy ounce.
Forexpros
