Investing.com - Copper prices resumed their decline on Tuesday, as ongoing concerns over the health of China's economy weighed.
On the Comex division of the New York Mercantile Exchange, copper for March delivery fell by as much as 1.31% to touch a daily low of $2.860 a pound, before trading at $2.862 during European morning hours, down 3.6 cents, or 1.24%.
A day earlier, copper for March delivery fell by as much as 2.77% to $2.765 a pound, a level not seen since June 2010, before turning higher to settle at $2.898, up 5.3 cents, or 1.88%.
Futures were likely to find support at $2.765 a pound, the low from December 1, and resistance at $2.917, the high from December 1.
A pair of reports on Chinese November factory activity released Monday provided more evidence of a slowdown in the world's second largest economy.
China's manufacturing purchasing managers' index slipped to an eight-month low of 50.3 in November, below expectations for a reading of 50.5 and down from 50.8 in October.
The China HSBC final manufacturing PMI hit a six-month low of 50.0 last month, unchanged from a preliminary estimate and down from 50.4 the previous month.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold futures for February delivery dropped $24.50, or 2.01%, to trade at $1,193.60 a troy ounce, while silver futures for March delivery plunged 52.9 cents, or 3.17% to trade at $16.16 an ounce.
The US dollar index, which tracks the greenback against a basket of six major rivals, was up 0.32% on the day to trade at 88.30, not far from a four-year peak of 88.52 scaled a week ago.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Gold prices are likely to remain vulnerable to further losses in the near-term amid indications a strengthening U.S. economic recovery will force the Federal Reserve to start raising interest rates sooner and faster than previously thought.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Meanwhile, West Texas Intermediate and Brent oil prices resumed their decline on Tuesday, as investors opened fresh short positions in response to OPEC's decision to maintain production last week.
New York-traded crude oil for delivery in January fell 76 cents, or 1.09%, to trade at ding at $68.25 a barrel, while London-traded Brent futures lost 36 cents, or 0.5%, to trade at $72.18 a barrel.