(MENAFN - FxPro) Copper prices moved further away from a six-week low on Tuesday, after disappointing Chinese inflation data added to speculation policymakers will have to introduce further stimulus measures to jumpstart the economy amid lackluster growth.
On the Comex division of the New York Mercantile Exchange, copper for July delivery tacked on 1.2 cents, or 0.43%, to trade at $2.708 a pound during European morning hours after hitting an intraday peak of $2.715, the most since June 4.
A day earlier, copper inched up 0.4 cents, or 0.15%, to close at $2.696. Futures were likely to find support at $2.670, the low from June 5, and resistance at $2.731, the high from June 4.
Government data released earlier showed that Chinese inflation for May rose 1.2%, below expectations for 1.3% and down from 1.5% in April.
The producer price index fell by a more-than-expected 4.6% last month, underling concerns over the health of the world's second largest economy.
Disappointing trade data released on Monday indicated a recovery in the broader economy remains fragile and may need further government stimulus.
China's economy grew at the slowest pace in six years in the first quarter, underling speculation policymakers will have to introduce further easing measures to jumpstart the economy amid lackluster growth.
Since November, the People's Bank of China has introduced a series of stimulus measures, including lowering interest rates three times and cutting the reserve requirement ratios of major banks twice, in order to spur economic activity and boost growth.
The Asian nation is the world's largest copper consumer, accounting for nearly 40% of global demand.
Elsewhere, gold futures for August delivery tacked on $3.00, or 0.26%, to trade at $1,176.60 a troy ounce, while silver futures for July delivery rose 7.3 cents, or 0.46% to trade at $16.03 an ounce.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was at 95.15, not far from overnight lows of 94.86.
The dollar remained softer against the other major currencies on Tuesday, one day after a steep decline against the euro, which was boosted by rising bund yields and robust German economic data.
Meanwhile, developments surrounding talks between Greece and its international creditors remained in focus.
German Chancellor Angela Merkel warned Monday that "there isn't much time left" to reach an agreement on a cash-for-reforms deal needed to unlock more financial aid before the country runs out of money.
Athens delayed a key debt payment to the International Monetary Fund on Friday, saying it would repay the money along with other payments due this month by the end of June.