Investing.com - Copper futures edged lower on Wednesday, as traders looked ahead to key Chinese economic data later in the week to gauge the strength of the world’s second largest economy and biggest consumer of the industrial metal.
On the Comex division of the New York Mercantile Exchange, copper for December delivery shed 0.6 cents, or 0.2% to trade at $3.027 a pound during European morning hours.
A day earlier, copper prices fell to $2.990 a pound, the weakest level since November 5, before turning higher to settle at $3.033, up 1.3 cents, or 0.43%.
Futures were likely to find support at $2.990, the low from November 11, and resistance at $3.051, the high from November 10.
China is due to release data on October industrial production, fixed asset investment and retail sales on Thursday. The Asian nation is also scheduled to produce data on new-loans, a key barometer of economic activity.
A disappointing report could force policymakers in Beijing to introduce fresh stimulus to spur economic growth.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, the dollar remained well bid amid expectations that the Federal Reserve will raise interest rates ahead of its other major peers.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, picked up 0.1% to trade at 87.71.
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 December delivery shed 20 cents, or 0.02%, to trade at $1,162.80 a troy ounce, while silver futures for December delivery lost 3.0 cents, or 0.19% to trade at $15.64 an ounce.
Comex gold prices have been under heavy selling pressure in recent weeks amid speculation the Federal Reserve is moving closer to raising interest rates for the first time in eight years after ending its monthly bond-buying program, also known as quantitative easing, last month.
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.