Last month saw production at factories, mines and utilities advance 0.3 percent in the U.S., the globe's second-biggest consumer of the reddish metal, according to data released by the U.S. Federal Reserve. The cabinet of China is poised to present economic plans on Wednesday that aim to spur development and growth in the Asian nation, which is the globe's top consumer of industrial metals.
Manufacturing advanced 0.3 percent last month in the U.S., which pushed past projections issued by economists. Their forecast registered at 0.2 percent, according to a poll administered by Bloomberg.
"Copper was already rising ahead of the industrial-production numbers, and China may be slowing, but there's still demand there," commodity strategy head Bart Melek with TD Securities in Toronto told the news source on Tuesday. "I don't think the government is going to allow China's economy to slump materially."
At 11:55 a.m. on Tuesday, copper futures rose 1.05 percent, a 0.033-cent lift to $3.1775 per pound.
China indicated on Monday that its economic development and growth during the second quarter was at a reduced pace, marking the ninth time of slowed activity during the past 10 quarters.
Dollar's drop benefits copper's price
Reuters reports the reddish metal also advanced on Tuesday as a result of the U.S. dollar losing some its luster. Investors and analysts were keeping a close eye on the U.S. Federal Reserve to determine its course regarding economy-spurring monetary easing programs.
Chairman Ben Bernanke with the Fed is slated to deliver congressional testimony later this week, from which observers anticipate gleaning tips about the asset purchasing program's future.
Thus far this year, the base metal has dropped roughly 12 percent.
"The overly pessimistic market in the past few weeks and months is making copper vulnerable to a short-term recovery," commodity research head Eugen Weinberg with Commerzbank told Reuters on Tuesday. "Much of the growth fears are already priced in. So I don't see much potential to the downside. But any price increase is going to be gradual. The Chinese demand situation remains very challenging."
Confidence amongst homebuilders in the U.S. rose this month to its top level in well more than seven years, Reuters reports. Demand remains strong and production from the U.S. industry gained a bit more than anticipated last month.
But the Asian Development Bank slashed its projection for development and growth in regions of Asia for this year and 2014 due to troubles in China and that country's softer outlook.
Fed stimulus program impacts metal's value
Investing.com reports the reddish metal climbed 2.7 percent last week as a consequence of the Fed chief noting the body he leads will resume its program of accommodative monetary policy in the near term.
Retail sales in the U.S. climbed 0.4 percent last month, representing somewhat of a slowdown after the metric checked in at 0.5 percent during the month prior. Economists, investors and analysts anticipated the metric would climb to 0.8 percent last month.
The Empire State manufacturing index pushed to its five-month peak of 9.5 this month after having registered at 7.8 last month. That pushed well past the projections of economists, who believed it would check in at 5.0.
That data is particularly pertinent at this time given the Bernanke testimony and whether the Fed will adjust its economy-spurring measures.
Many investors believe that asset purchases do their part to drive prices higher on the commodity complex because flooding the market with dollars when purchasing debt tends to water down the value of the greenback.
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