Also buoying the price of the reddish metal as the trade week began was consideration for the decision by policy makers with the U.S. Federal Reserve, whose board of policy makers are set to convene two days of meetings this week to consider reducing monetary stimulus measures. The base metal is sensitive to domestic and international financial and economic developments due to its myriad uses in construction, manufacturing and additional industry.
"Globally, copper inventories are low, with most stock held in China," states a Monday report authored by commodities trader Trafigura Beheer BV, according to Bloomberg. "Our expectation is that the copper market will remain broadly in balance next year."
At 10:27 a.m. on Monday, copper futures rose 0.27 percent, a 0.009-cent lift to $3.321 per pound.
Reuters reports investors and analysts are closely watching for indications as to what the Federal Open Market Committee will decide regarding stimulus once its meetings adjourn on Wednesday after beginning on Tuesday.
Free Metals Trading Starter Kit
Download our complimentary starter kit and receive access to over 65 pages of professional futures guidance and metals market education.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.