Investing.com - Copper futures edged lower on Tuesday, as weaker than expected Chinese manufacturing data added to concerns over the health of the world's second largest economy.
On the Comex division of the New York Mercantile Exchange, copper for December delivery traded at $3.044 a pound during European morning hours, down 1.2 cents from $3.056 on Monday.
Futures were likely to find support at $3.012, the low from September 29 and resistance at $3.067, the high from September 29.
China’s final HSBC Purchasing Managers Index for September came in at 50.2, weaker than a preliminary reading of 50.5 and down from August's 50.3 figure.
Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector.
The official version of the September PMI is due on Wednesday, with market analysts expecting a reading of 51.0, compared to 51.1 in August.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.
The industrial metal lost 4.4% in the third quarter amid indications China's economy is losing momentum and as a broadly stronger U.S. dollar dampened the appeal of dollar-denominated commodities.
Elsewhere on the Comex, gold for December delivery dropped $1.80, or 0.15%, to trade at $1,217.00 a troy ounce, while silver for December delivery shed 9.4 cents, or 0.54%, to trade at $17.47 an ounce.
Growing expectations for higher U.S. interest rates and a broadly stronger U.S. dollar continued to weigh on precious metals.
Gold futures are on track for an 8.3% drop in the three months ending September 30, while silver prices declined 17.1% since the end of June.
Gold and silver cost money to store and struggles to compete yield-bearing assets when interest rates are on the rise.
Meanwhile, the dollar index has gained nearly 7% this quarter, the most since the 2008 global financial crisis, amid speculation that the Federal Reserve could raise interests sooner and faster than previously expected.