Copper rallies to 11-week high on China stimulus hopes

          Copper prices extended last week’s gains to hit an 11-week high on Monday, as disappointing housing data from China fuelled speculation policymakers will unveil fresh stimulus measures to stabilize the economy.

On the Comex division of the New York Mercantile Exchange, copper for July delivery advanced 0.79%, or 2.5 cents, to trade at $3.172 a pound during European morning hours.
Copper rose to a session high of $3.184 a pound earlier, the most since March 7. Prices eased up 0.08%, or 0.2 cents, on Friday to settle at $3.147 a pound.

Futures were likely to find support at $3.127 a pound, the low from May 16 and resistance at $3.219 a pound, the high from March 7.

Data released over the weekend showed that house prices in China rose 6.7% in April from a year earlier, slowing from a 7.7% increase in the previous month.

The disappointing data added to hopes that China’s government will introduce fresh stimulus to combat recent signs of a slowdown in the nation’s economy.

The next slice of Chinese economic data to come out will be the HSBC preliminary purchasing managers' index for May, due on Thursday.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold for June delivery rose 0.53%, or $6.80, to trade at $1,300.20 a troy ounce, while silver for July delivery jumped 1.24%, or 23.9 cents, to trade at $19.56 an ounce.

Heightened tensions between Russia and Ukraine continued to support demand for safe haven assets.

The conflict between pro-Russian separatists and Ukrainian forces continued on over the weekend, stoking fears that the crisis will further develop and drag the U.S. deeper into the standoff.

U.S. and European officials warned over the weekend that Russia would have to face additional sanctions if Moscow disrupts the upcoming presidential elections in Ukraine on May 25. - investing.com