Credit: Investing.com -
Investing.com - Copper futures edged lower on Tuesday, as mounting concerns over the health of China's property sector dampened appetite for the red metal.
On the Comex division of the New York Mercantile Exchange, copper for December delivery shed 0.8 cents, or 0.26% to trade at $3.032 a pound during European morning hours.
A day earlier, copper lost 0.7 cents, or 0.23%, to settle at $3.039 a pound.
Futures were likely to find support at $2.985, the low from November 14, and resistance at $3.061, the high from November 17.
The National Bureau of Statistics said in a report earlier in the day that home prices in China declined in 69 of 70 cities in October from September.
New home prices slumped 2.6% in October from the year-ago period, following a decline of 1.3% in September.
A cooler property sector not only weighs on demand for copper as construction material, but also dampens consumption from the home appliances sector.
China is the world's largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold futures for December delivery rallied $18.10, or 1.53%, to trade at $1,201.60 a troy ounce, while silver futures for December delivery jumped 28.0 cents, or 1.74% to trade at $16.33 an ounce.
Gold prices have been well-supported in recent days as investors returned to the market amid bullish chart signals.
Prices are up nearly 5.5% since hitting a four-and-a-half-year low of $1,130.40 on November 7.
Despite recent gains, gold prices are likely to remain vulnerable 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.
On Wednesday, the Fed will release the minutes of its October policy meeting, at which it ended its bond-buying program in a widely expected decision.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
