Investing.com - Copper futures were lower for the second consecutive day on Thursday, as a broadly stronger U.S. dollar and slowing property prices in China weighed.
On the Comex division of the New York Mercantile Exchange, copper for December delivery lost as much as 2.6 cents to hit a session low of $3.117 a pound.
Prices recovered to last trade at $3.129 during European morning hours, down 1.5 cents, or 0.48%.
Futures were likely to find support at $3.081, the low from September 16 and resistance at $3.174, the high from September 17.
A day earlier, copper futures declined 2.2 cents, or 0.71%, to settle at $3.143 as the U.S. dollar rallied against the euro and the yen after the Federal Reserve brought forward its outlook for rising interest rates.
The Fed cut its monthly bond-buying program by another $10 billion following its two-day policy meeting on Wednesday, keeping the program on track to finish next month.
The Fed statement reiterated that it expects rates to remain on hold for a "considerable time", after its quantitative easing program ends, but it also raised its median estimate for where rates will be by the end of 2015.
Speaking at the central bank’s post-policy meeting press conference, Fed Chair Janet Yellen emphasized that the timing of the first rate hike would be data-dependent.
The dollar rose to its highest level in six years against the yen, while the euro slid to fresh 14-month lows, as markets interpreted the Fed's statement as hawkish.
A stronger U.S. dollar usually weighs on copper, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Meanwhile, data released earlier showed that new home prices in China rose at annualized rate of 0.5% in August, below expectations for a gain of 2.3% and slowing from July's 2.5% increase.
On a monthly basis, prices fell 0.6%, their fourth consecutive decline, fuelling concerns about the health of the real-estate market.
China is the world's largest copper consumer, accounting for nearly 40% of global demand.
Elsewhere on the Comex, gold for December delivery dropped $12.90, or 1.04%, to trade at $1,222.80 a troy ounce, while silver for December delivery shed 25.6 cents, or 1.37%, to trade at $18.47 an ounce.