Copper settled -0.21% down at 456.70 edged down after steep gains in the previous week, although prices did not stray too far from a 4-1/2 month top as a new round of US monetary stimulus measures and a weak dollar continued to support sentiment. Fed will buy a total of $600 billion of bonds under its new stimulus program announced Thursday, known as QE3, and will look for a US unemployment rate of 7% before it halts the program. A sour mix of US data higher gasoline prices, a rise in consumer prices and a drop in industrial output helped justify the Fed's decision to launch the third round of bond purchases to spur growth. After months of dithering on the economy, India's beleaguered government roared back to life in dramatic fashion on Friday, announcing big bang reforms as part of package of measures aimed at reviving growth and staving off a ratings downgrade. The market focused on Bernanke's statement at the Fed's policy meeting after the Fed announced its minute in August, with expectations of QE3 implementation in Sep growing. In yesterday's trading session copper has touched the low of 456.25 after opening at 457.2, and finally settled at 456.7. For today's session market is looking to take support at 456.1, a break below could see a test of 455.4 and where as resistance is now likely to be seen at 457.6, a move above could see prices testing 458.4.

Trading Ideas:

Copper trading range for the day is 455.4-458.4.

Copper dropped on profit booking after prices rallied on prospects of demand boost from new round of monetary stimulus

Gains spanned the base metals complex, with markets from aluminum to zinc all scaling multi-month peaks

There was news out of the euro zone that the ECB and IMF negotiated to use EUR 300 billion as Spain's rescue fund