Copper settled down -0.58% at 429.70 declined modestly on Tuesday, as investors remained cautious ahead of the Federal Reserve's policy meeting due to begin later in the day. Traders looked ahead to the Fed’s monetary policy statement due on Wednesday. The central bank is likely to stick to its timetable to taper its monthly bond purchases by another $10 billion to a total of $25 billion a month. Meanwhile, Wednesday’s preliminary estimate on second quarter economic growth and Friday’s U.S. jobs report for July were both expected to indicate that the economic recovery is continuing. On Tuesday, base metal trading was quiet as investors were cautious against increasing risks. The US President Obama announced to impose further sanctions on Russia in energy, arms, and financial areas. EU nations also agreed to impose new sanctions. In response, US stocks fell across the board, while the US dollar index climbed 0.3%. Although the US Conference Board Consumer Confidence Index posted an unexpected rise in July to its highest since October 2007, market failed to gain support therefrom. LME copper tested a low of USD 7,065/mt and closed at USD 7,074/mt, down USD 55/mt, and showing some resistance to declines. Besides, LME copper stocks have fallen to 150,000 mt, with the cash-to-three-month backwardation up to about USD 20/mt. Technically market is under long liquidation as market has witnessed drop in open interest by -0.01% to settled at 9483 while prices down -2.5 rupee, now Copper is getting support at 428.7 and below same could see a test of 427.7 level, And resistance is now likely to be seen at 431.3, a move above could see prices testing 432.9.

Trading Ideas:

Copper trading range for the day is 427.7-432.9.

Copper prices slipped prospects of growing supplies overshadowed encouraging signs of health in the global economy

The copper market was expected to register another year of surplus this year, in a move that is seen weighing on prices.

Chile's massive Collahuasi copper mine has resumed operations following a temporary work stoppage.