Copper settled 0.07% up at 423.85 firmed on Friday and was set to close higher for a second straight week after U. S. jobs and inflation figures showed further signs of economic recovery, but prices were capped as high stockpiles in China discouraged buyers. Copper is set to close the week up around one percent, but still remains in negative territory for the year, having dropped more than 6 percent from early February's 2013 peaks. The number of Americans filing new claims for unemployment benefits dropped for a third straight week last week, the latest indication the labor market recovery was gaining traction. A second report from the Labor Department offered little reason to worry about a rise in inflation, with food prices at the wholesale level almost reversing January's increase and the Cost of automobiles rising only marginally. Other data on Thursday showed a spike in the cost of gasoline pushed up producer prices last month, but a lack of broad price pressures gives the Federal Reserve scope to maintain its very easy monetary policy. Any increase in the dollar could weigh on metals prices as a firmer dollar typically erodes metals demand because buyers with other currencies have to pay more for their metal. Chinese investors import metal to sell into the domestic market and obtain funds to invest in other higher yielding assets such as real estate. This play helped to swell Shanghai's bonded stocks to record highs this year. For today's session market is looking to take support at 423.5, a break below could see a test of 423.1 and where as resistance is now likely to be seen at 424.2, a move above could see prices testing 424.5.

Trading Ideas:

Copper trading range for the day is 423.1-424.5.

Copped seen under pressure with appetite for risk waning after the release of a set of mixed economic data from the United States.

SHFE and LME copper stocks have climbed more than 200,000 tonnes, or more than a quarter of combined total stocks so far this year.

Data showed that U. S. industrial production rose more than expected in February on a rebound in manufacturing, signaling strength in the economy.