Copper settled down -0.06% at 424.80 held steady but was eyeing its biggest weekly gain since early July on brightening prospects over global growth, but caution over China's stuttering property markets kept traders cautious and capped gains. Business growth in China and across Europe slowed this month, surveys showed on Thursday, but U.S. activity picked up speed, leaving a mixed picture of global economic growth. Also U.S. home resales raced to a 10-month high in July and the number of Americans filing new claims for jobless benefits fell last week, signaling strength in the economy. Data released earlier showed that the preliminary reading of China’s HSBC manufacturing index fell to a three-month low of 50.3 in August from 51.7 in July and well short of forecasts for 51.5. Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. A day earlier, copper futures surged 2.87%, or 8.8 cents, to end at $3.177 a pound, after commodities giant Glencore forecast strong demand from both China and the West in the second half of the year. The spotlight will be on Fed Chair Janet Yellen, who will speak on Friday in her first appearance at Jackson Hole as head of the U.S. central bank. Technically market is under long liquidation as market has witnessed drop in open interest by -4.09% to settled at 10939 while prices down -0.25 rupee, now Copper is getting support at 422.9 and below same could see a test of 421 level, And resistance is now likely to be seen at 426.2, a move above could see prices testing 427.6.

Trading Ideas:

Copper trading range for the day is 421-427.6.

Copper edged lower after a gauge on China's factory health showed growth slowed in August, denting optimism over demand.

FOMC’s meeting minutes show the Fed will likely hike interest rates soon, weighing down base metals prices.

HSBC’s August PMI for China fell far short of market expectations and PMIs from euro zone countries remained sluggish.