Copper futures edged higher on Monday, as investors digested Chinese inflation data released over the weekend.
On the Comex division of the New York Mercantile Exchange, copper for September delivery tacked on 0.18%, or 0.6 cents, to trade at $3.179 a pound during European morning hours.
Futures were likely to find support at $3.157, the low from August 7 and resistance at $3.248, the high from August 5.
Data released on Saturday showed that consumer price inflation in China held steady at 2.3% in July, in line with expectations.
The data indicated that policy makers in Beijing still have room for monetary easing amid a lack of pressure on prices.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.
Copper prices have been on a downward trend in recent sessions amid indications of a slowdown in demand from China, the world’s largest consumer of the red metal.
Official trade data released Friday showed that China’s copper arrivals fell 2.9% month-on-month in July, declining for a third straight month.
Elsewhere on the Comex, gold for December delivery dipped 0.16%, or $2.10, to trade at $1,308.90 a troy ounce, while silver for September delivery shed 0.17%, or 3.3 cents, to trade at $19.90 an ounce.
Market players continued to monitor geopolitical developments from Ukraine and the Middle East.
Fighting between Ukraine security forces and pro-Russia rebels continued in eastern Ukraine over the weekend, as Ukraine dismissed the insurgents’ offer of a ceasefire.
Meanwhile, in Iraq, the U.S. conducted a third day of air strikes against jihadi militants from the Islamic State insurgent group in northern Iraq on Sunday in an effort to protect Iraqi civilians from the uprising as well as U.S. personnel in the country.
Elsewhere, Israel and Hamas agreed to a fresh 72-hour ceasefire in Gaza on Sunday, following a month of violence in the Hamas-ruled territory.