Chicago 19/09/2016 - The copper market drifted around the previous settlement amid a general market retreat ahead of Japanese and US monetary decisions.
Copper for December settlement on the Comex division of the New York Mercantile Exchange dipped 0.50 cents or 0.2 percent to $2.1550 per pound. Trade has ranged from $2.1390 to $2.1595.
With the Bank of Japan (BoJ) and the Federal Open Market Committee (FOMC) holding meetings this week, prices were fixed to a narrow range despite a wave of returning Chinese investors.
Though the FOMC isn't expected to raise interest rates until 2017, the narrow prospects of a hawkish statement has driven market participants to the sidelines until the release on Wednesday afternoon.
"As the broader financial world awaits the US Fed meeting later this week, LME trading activity saw prices mostly edge higher as Chinese traders returned from the autumn festival break," Sucden Financial said.
In Japan, the BoJ is likely to inject another round of stimulus into a weak economy. The Japanese central banks introduced negative interest rates earlier this year but that has failed to ignite inflation or reverse nearly three decades of little to no growth.
"This week’s key risk events include the BOJ and US FOMC meetings," FastMarkets analyst Andy Farida said. "A surprise rate rise could put downward pressure on base metals but the recent price action suggests that market does not anticipate such an event. Prior to the Fed announcement, we feel that prices will mostly trade sideways."
In a light data day, US NAHB housing market index in September came in at 65, above the forecast of 60.
Turning to US markets, the Dow Jones industrial average and S&P gained 0.1 and 0.2 percent respectively, while the dollar softened 0.2 percent to $1.1175 against the euro.
Oil prices recovered this morning on growing expectations that Iran will support measures to boost prices through an agreement with the Organisation of Petroleum Export Countries (OPEC).
Light sweet crude (WTI) oil futures on the Nymex were last up 34 cents or 0.8 percent to $43.96 per barrel, while the most active Comex gold contract was last trading at $1,317.70 per ounce, up $7.50.
(Editing by Tom Jennemann)