Copper settled up 1.18% at 434.75 climbed for the first time in three days on speculation that an increase in auto sales globally will boost demand. Also support seen after the US GDP growth surged to an annual rate of 4% in the second quarter of this year, well above the expected 3% rise. The marked Q2 growth was largely attributable to rising inventories, exports, as well as private consumption. The PCE grew at a rate of 2.3% during the April-to-June period, beating the estimated 2% increase and 1.4% rise in Q1. Meanwhile, the US Federal Reserve further scaled back its QE stimulus by USD 10 billion at the July Federal Open Market Committee meeting.

The Fed stated that the likelihood of inflation hovering persistently below 2% fell slightly, with policymakers split on an interest rate hike. In the euro zone, the July consumer confidence index was finalized at -8.4, in line with expectations and June's reading. Germany's preliminary CPI grew by 0.3% MoM in July, level with the reading in June and rose by 0.8% YoY, below the 1% increase a month earlier. China's President Xi Jinping highlighted at a forum on Wednesday that the Chinese economy is faced with some headwinds and changes threatening to drag down growth.

The government should be prepared to contend with new challenges and work to maintain a stable economic growth. A slew of economic reports, including the euro zone's inflation, US initial jobless claims, Challenger's Job-Cut reports, as well as Chicago's manufacturing PMI, all are expected to come in positive on Thursday. Technically Copper is getting support at 429.9 and below same could see a test of 425.1 level, And resistance is now likely to be seen at 437.3, a move above could see prices testing 439.9.

Trading Ideas:

Copper trading range for the day is 425.1-439.9.

Copper gains recovering from lows after data showed that the US economy accelerated in the second quarter.

In addition to continued QE tapering, the Fed was more optimistic over the US economy, especially labor market.

The US GDP was reported up 4% in the second quarter, well above forecast.