Investing.com - Copper prices declined for the third consecutive session on Tuesday, as growing concerns over the global economic outlook and the impact on future demand prospects dampened the appeal of the commodity.
On the Comex division of the New York Mercantile Exchange, copper for March delivery shed 0.9 cents, or 0.3%, to trade at $2.877 a pound during European morning hours.
Prices hit a session low of $2.869 earlier, the weakest level since December 4. A day earlier, copper lost 1.7 cents, or 0.59%, to settle at $2.885.
Futures were likely to find support at $2.860 a pound, the low from December 3, and resistance at $2.939, the high from December 5.
Data on Monday showed that China’s exports rose 4.7% from a year earlier in November, missing expectations for a 7.9% increase, while imports fell 6.7%, compared to forecasts for a gain of 3.5%.
The disappointing data fuelled fears that China will miss its annual growth target of 7.5% and added to speculation that the government will need to roll out fresh stimulus measures to avert a sharper slowdown.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile the U.S. dollar remained supported amid indications a strengthening U.S. economic recovery will force the Federal Reserve to start raising interest rates sooner and faster than previously thought.
The Wall Street Journal reported that Fed officials are looking at dropping an assurance that interest rates will stay low for a "considerable time", in its statement, ahead of its upcoming policy meeting next week.
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.
Elsewhere on the Comex, gold futures for February delivery tacked on $10.90, or 0.91%, to trade at $1,205.80 a troy ounce, while silver futures for March delivery picked up 17.4 cents, or 1.07% to trade at $16.45 an ounce.
Gold prices climbed above the $1,200-level on Tuesday, as investors sought shelter from steep losses in oil and equity markets, amid lingering fears of a global economic slowdown.
Oil prices continued to tumble on Tuesday, following falls of more than 4% on Monday, as investors piled on to their short positions in anticipation of lower prices into the new year amid concerns over a growing supply glut.
Meanwhile, in Asia, China’s Shanghai Composite plunged more than 5% to record its biggest one-day loss since August 2009 as investors headed for the exits amid growing concerns over the health of China's economy.
Stock markets in Europe were also sharply lower after the open, with Germany's DAX dropping 1%, while Spain's IBEX 35 and Italy's FTSE MIB both lost more than 1.5%.
Gold’s appeal as a safe-haven is boosted during times of economic uncertainty.