Investing.com - Copper futures declined on Tuesday, as continued strength in the U.S. dollar and concerns about a slowdown in demand from China weighed.
On the Comex division of the New York Mercantile Exchange, copper for December delivery dipped 0.7%, or 2.2 cents, to trade at $3.146 a pound during European morning hours.
Prices held in a range between $3.141 and $3.187 a pound. Futures were likely to find support at $3.127, the low from September 4 and resistance at $3.209 a pound, the high from September 8.
The dollar rose to its highest level in six years against the yen, while the euro slid to fresh 14-month lows after a study by the San Francisco Federal Reserve published on Monday indicated that Fed officials see rates rising earlier than markets expect.
The greenback has rallied in recent weeks amid expectations that the Fed may announce a rate increase earlier than expected after economic data indicated that the recovery in the U.S. is progressing strongly.
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, official trade data released Monday showed that China’s copper arrivals fell 12% from a year earlier in August, due to the fallout from a government investigation into metal financing at Chinese ports.
A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.
China is the world's largest copper consumer, accounting for nearly 40% of global demand.
Elsewhere on the Comex, gold for December delivery tacked on 0.25%, or $3.10, to trade at $1,257.40 a troy ounce, while silver for December delivery picked up 0.56%, or 10.7 cents, to trade at $19.06 an ounce.