Copper settled down -0.66% at 465.55 edged lower as investors awaited further indications over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Market players remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program. US data on initial jobless claims and the housing sector later in the week will also be closely watched. Copper traders have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. Copper inventories at the Shanghai Futures Exchange (SHFE) increased 10,700 mt to 161,900 mt last week, in contrast with declines reported in previous weeks. Nevertheless, this is not necessarily the result of flagging demand in China given that the country's refined copper imports in July surged from the previous month. Technically market is under long liquidation as market has witnessed drop in open interest by -0.27% to settled at 22113 while prices down -3.1 rupee, now Copper is getting support at 461.5 and below same could see a test of 457.5 level, And resistance is now likely to be seen at 469, a move above could see prices testing 472.5.

Trading Ideas:

Copper trading range for the day is 457.5-472.5.

Copper dropped as investors awaited further indications over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases.

Investors closed positions in base metal markets ahead of the release of the minutes of the Fed's latest policy meeting.

Copper daily stocks at Shanghai exchange came down by 1574 tonnes