Copper yesterday traded with the positive node and settled 0.83% up at 409 as a supply disruption from a major mine outweighed worries about Beijing's efforts to cool Chinese property prices. Grasberg mine, remains closed, which will tighten copper supply and lend support to copper prices . Charles Evans, president of the Federal Reserve Bank of Chicago, hinted last night his support for asset buying program, sending the US dollar index down sharply. US Federal Reserve could continue full-speed ahead on its bond-buying program through the summer, but end it abruptly in the autumn if by then it is confident that the improvement in the jobs outlook is here to stay, Charles Evans said. His opinions are at odds with another three US officials, who appealed last week for exit of QE3 before the end of this year. Evans' remarks sent the US dollar index down 0.48%. Investors are now eyeing Fed Chairman Bernanke's speech and the minutes of the latest monetary policy meeting. PBOC issued RMB 10 billion in three-month bills to combat "hot money". This move surprised markets as the last time the PBOC issued bills happened in December 2011. RMB 101 billion in repurchase in open market will mature this week, half of the previous week. After draining USD 79 billion through bill issuance and repurchase, the PBOC will realize slight net drain of capital this week in open market. In yesterday's trading session copper has touched the low of 400.2 after opening at 405, and finally settled at 409. For today's session market is looking to take support at 402.5, a break below could see a test of 396 and where as resistance is now likely to be seen at 413.2, a move above could see prices testing 417.4.

Trading Ideas:

Copper trading range for the day is 396-417.4.

Copper gained as a supply disruption from a major mine outweighed worries about Beijing's efforts to cool Chinese property prices.

Grasberg mine, world's third largest open pit copper mine, remains closed, which will tighten copper supply and lend support prices

Charles Evans hinted last night his support for asset buying program, sending the US dollar index down sharply