Copper trades near 3-month low with Fed, Greece in focus

Investing.com - Copper prices traded near a three-month low struck in the previous session on Tuesday, as investors looked ahead to the Federal Reserve's upcoming policy meeting and amid ongoing uncertainty over the future of Greece.

On the Comex division of the New York Mercantile Exchange, copper for July delivery hit an intraday low of $2.628 a pound, before trading at $2.629 during European morning hours, down 1.8 cents, or 0.69%.

A day earlier, copper fell to $2.625, a level not seen since March 19, before ending at $2.647, down 3.1 cents, or 1.16%. Futures were likely to find support at $2.595, the low from March 19, and resistance at $2.684, the high from June 12.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.15% to 95.21 early on Tuesday, moving off overnight lows of 94.81.

Investors were looking ahead to the Fed’s monetary policy statement on Wednesday for any fresh indications on when it may start to hike interest rates.

Recent economic reports have indicated that the U.S. economy was regaining strength after contracting in the first quarter, fuelling speculation that the U.S. central bank could raise rates as soon as September.

Meanwhile, investors continued to monitor developments surrounding talks between Greece and its international creditors, amid growing concerns that the country could default on its debt be forced out of the euro zone.

Europe wants Greece to make spending cuts worth €2 billion in order to secure a deal that will unlock additional funds before its bailout expires at the end of June and it must repay €1.6 billion to the International Monetary Fund.

Investors were looking ahead to a meeting of euro zone finance ministers on Thursday, which was being seen as Greece's last chance to strike a deal.

European Central Bank President Mario Draghi said Monday that a Greek default would be “uncharted waters,” but added that he believes policymakers have all the tools to manage the situation.

Elsewhere, gold futures for August delivery dipped $3.50, or 0.3%, to trade at $1,182.30 a troy ounce, while silver futures for July delivery fell 9.3 cents, or 0.58% to trade at $15.99 an ounce.