Investing.com - Copper futures extended gains from the prior session on Thursday to trade just below a one-month peak as expectations build that policymakers in China will introduce further stimulus measures to boost growth following a recent batch of disappointing economic data.
Copper for December delivery on the Comex division of the New York Mercantile Exchange tacked on 0.9 cents, or 0.37%, to trade at $2.425 a pound during morning hours in London.
A day earlier, copper jumped 2.8 cents, or 1.17%, as weak China inflation data reinforced views that Beijing will roll out fresh support measures soon for the world's second largest economy.
The soft inflation data came after trade figures on Tuesday revealed that China's imports tumbled more than 20% in September. A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere in metals trading, gold futures for December delivery inched up $4.70, or 0.4%, to trade at $1,184.50 an ounce. On Wednesday, gold rallied to a four-month high of $1,189.90 after disappointing U.S. economic data fueled bets that the Federal Reserve will hold off on raising interest rates until 2016.
A delay in raising rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed near seven-week lows early Thursday.
Investors were looking ahead to U.S. economic reports on inflation and weekly jobless claims later in the day for further clues as to the future path of interest rates.