Copper futures were increasing on Tuesday as the U.S.' top banker took his seat before congress on Capitol Hill as investors anticipated some sort of indication about economy-spurring measures, according to Reuters.
While the reddish metal benefited from anticipations about indications of monetary stimulus from U.S. Federal Reserve chair Ben Bernanke during his two days of testimony, those gains were tempered by ongoing struggles in the euro zone with the sovereign debt crisis. Demand for industrial metals is sensitive to economic developments due to their use in construction, manufacturing and other industry.
"The more we see disappointing data from the U.S. economy, the more the financial community will expect further stimulus," partner Gianclaudio Torlizzi with T-Commodity told Reuters. "The market is reluctant to take big positions ahead of Ben Bernanke's speech as there is a risk for disappointment if he doesn't announce anything new. So the market is still a bit cautious."
At 10:07 a.m. on Tuesday, copper futures dropped 1.06 percent, a 0.037 slip to $3.448 per pound.
The Wall Street Journal reports losses to the U.S. dollar early on Tuesday were beneficial to the reddish metal.
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