Investing.com - Copper futures rallied more than 2% on Thursday to hit the highest level since June, as appetite for growth-linked assets improved after China reported stronger-than-expected trade figures for July.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.251 a pound during European morning trade, up 2.5%.
Nymex copper prices hit a session high of USD3.257 a pound earlier, the strongest level since June 11.
The September contract settled at USD3.173 a pound on Wednesday, unchanged for the day.
Copper prices were likely to find support at USD3.148 a pound, the low from August 6 and resistance at USD3.284 a pound, the high from June 10.
Market sentiment improved after official trade data released earlier showed that Chinese exports rose 5.1% from a year earlier in July, beating expectations for a 3% increase and following a 3.1% drop in June.
The data showed that imports surged 10.9%, blowing past forecasts for a 2.1% increase and following a 0.7% decline in June.
The country’s trade surplus narrowed to USD17.8 billion for the month from a surplus of USD27.1 billion in June.
The upbeat report eased concerns over a slowdown in the world’s second-largest economy and biggest consumer of the industrial metal.
Market players now looked ahead to a raft of Chinese economic data on Friday, including reports on inflation, industrial production and retail sales.
A broadly weaker U.S. dollar also supported gains. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 81.17, the lowest level since June 19.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders
IVA Price at posting:
15.5¢ Sentiment: ST Buy Disclosure: Held
