Investing.com - Copper prices resumed their decline on Wednesday, after data showed that inflation in China slowed to the lowest level in five years, underling concerns over a slowdown in the world's second largest economy.
On the Comex division of the New York Mercantile Exchange, copper for March delivery shed 1.8 cents, or 0.61%, to trade at $2.910 a pound during European morning hours.
A day earlier, copper prices rose 4.2 cents, or 1.46%, to settle at $2.927 a pound.
Futures were likely to find support at $2.865 a pound, the low from December 9, and resistance at $2.947, the high from December 9.
A government report released earlier showed that Chinese inflation for November slowed to 1.4%, the lowest since November 2009, from 1.6% in October. The producer price index fell by a more-than-expected 2.7% last month.
Data released earlier in the week 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.
Elsewhere on the Comex, gold futures for February delivery dipped 30 cents, or 0.02%, to trade at $1,231.70 a troy ounce, while silver futures for March delivery retreated 2.6 cents, or 0.15% to trade at $17.10 an ounce.
Gold prices held above the $1,200-level as investors sought shelter from steep losses in oil and equity markets, amid lingering fears of a global economic slowdown.
Oil prices resumed their decline on Wednesday to trade near five-year lows amid ongoing concerns over ample global supplies.
Meanwhile, shares in Athens were down more than 2%, after plunging 12% on Tuesday, following a surprise decision by the Greek government to bring forward a parliamentary vote for president to next week, a move which could trigger early elections if Prime Minister Antonis Samaras’ candidate is not chosen.