Copper settled up 2.45% at 425.05 on demand hopes after data earlier in the week showed US housing starts rose to an 8-month high in July. Data released Tuesday showed that U.S. housing starts jumped 15.7% in July, while the number of new permits granted to home-builders also accelerated, pointing to underlying strength in the housing sector. Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing. Investors also looked ahead to the release of minutes from the Federal Reserve's July policy meeting later in the day, as well as comments from the Fed's three-day conference in Jackson Hole, Wyoming, which starts on Thursday. 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. Other speakers include ECB Governor Mario Draghi and Bank of Japan Governor Haruhiko Kuroda. Glencore PLC, a commodity trading house and miner, has recently been optimistic towards the copper market, expecting robust demand from both China and the US in the second half of this year. The company added that an expected oversupply in the market could be alleviated by shortages of scrap copper and the risk of production disruptions at new and old mines. In China, the relatively tight copper supply is now pushing up physical premiums. Also HSBC’s China manufacturing PMI for August and PMIs from the euro zone and the US, due for release on Thursday, should provide guidance for base metals. Technically market is getting support at 418.5 and below same could see a test of 411.8 level, And resistance is now likely to be seen at 428.8, a move above could see prices testing 432.4.

Trading Ideas:

Copper trading range for the day is 411.8-432.4.

Copper edged higher as optimism over the U.S. economic outlook boosted demand for the industrial metal.

Global copper inventories are expected to rise as mine supply improves later in the year

Although demand from makers of copper products is also expected to revive from its summer lull.