Copper yesterday settled up 0.5% at 421.85 as the dollar fell and on steady buying from China, although investors remain concerned about forecasts of a supply glut. The report helped push world shares towards five-year highs, but was not enough to propel copper past the one-month peak, as continue to bump up their surplus supply forecasts for this year and next. Data showed China's refined copper imports rose 11.04 percent in June from the same period last year. Also lifting sentiment, China's central bank announced on Friday that banks could lend at any rate they wanted. The local media in China reported that the government is looking to increase investment in railway projects as it aims to ensure annual economic growth does not sink below 7 percent. China consumes around 40 percent of the world's copper. Economic growth in the country slowed to 7.5 percent in the second quarter, from 7.7 percent in the first quarter, and investors fear it slipping further still this year. US Home Price Index rose less than expected by 0.7% in May, compared with April's downwardly revised 0.5% growth. Richmond Manufacturing Index fell unexpectedly in July to -11. Downbeat figures caused the US dollar index to drop for a third straight day, lending support to base metals prices. The rise in copper prices is largely due to a weaker US dollar. Any potential towards a further rise in copper prices should be limited due to a lack of buying. Technically market is under fresh buying as market has witnessed gain in open interest by 1.8% to settled at 25534 while prices up 2.1 rupee, now Copper is getting support at 419.85 and below same could see a test of 417.85 level, And resistance is now likely to be seen at 423, a move above could see prices testing 424.15.

Trading Ideas:

Copper trading range for the day is 417.9-424.2.

Copper gains as the dollar fell and on steady buying from China, although investors remain concerned about forecasts of a supply glut.

Data showed China's refined copper imports rose 11.04 percent in June from the same period last year.

Also lifting sentiment, China's central bank announced on Friday that banks could lend at any rate they wanted.