Copper settled up 1.33% at 408.65 edged up on Thursday, lifted by a drop in the dollar and prospects for a more favourable demand outlook from top consumer China next year. The dollar index earlier fell to its lowest since Dec. 1 before paring losses. A weak dollar makes commodities priced in the U. S. dollar cheaper for holders of other currencies. Slow economic growth in China and a cooling property sector this year had raised concerns about the prospects for demand from the world's top metals consumer, but some analysts said further stimulus measures are expected by its central bank to spur the economy and lift metals prices in the new year. In late November China cut benchmark interest rates for the first time in two years in an attempt to jumpstart the economy, giving metals prices a boost. China's central bank has told its banks to issue more loans in the final months of 2014 and has relaxed limits on their loan-to-deposit ratios to help boost lending, sources said. Copper has shed more than 12 percent so far this year but has clawed back 3 percent since hitting a 4-1/2 year low of $6,230.75 a tonne on Dec. 1. US initial jobless claims for the week ending December 5 came in at 294,000, fewer than expectations, boosting expectation for an earlier-than-anticipated rate hike by the Federal Reserve. The US Commerce Department reported that retail sales grew 0.7% MoM in November, the highest monthly increase in 8 months and well above expectations. A higher growth in wages and a tumble in oil prices combined to stimulate consumption in the US. Technically market is getting support at 405 and below same could see a test of 401.2 level, And resistance is now likely to be seen at 411.2, a move above could see prices testing 413.6.

Trading Ideas:

Copper trading range for the day is 401.2-413.6.

Copper prices gained on news that China's central bank was providing fresh stimulus to jump-start its economy.

PBOC injected 400 billion yuan, or nearly $65 billion, into the country's banking system to counter a slowdown in the world's second largest economy.

Market players shrugged off concerns over political instability in Greece ahead of a key data release from the European Central Bank.