Investing.com - Copper prices declined for the third consecutive session on Wednesday, as concerns over a bond default in China's construction sector continued to weigh.
On the Comex division of the New York Mercantile Exchange, copper for May delivery hit a session low of $2.689 a pound, the weakest level since April 15, before trading at $2.698 during European morning hours, down 0.4 cents, or 0.16%.
A day earlier, copper lost 3.0 cents, or 1.12%, to close at $2.702. Futures were likely to find support at $2.668, the low from April 15, and resistance at $2.829, the high from April 20.
Shenzhen-based Kaisa Group Holdings became the first Chinese property developer to default on its dollar bonds after it confirmed it had failed to pay a coupon on two senior notes on Monday.
Concerns over domestic bond defaults stoked investor worries that financing deals, which have locked up vast quantities of copper, could unravel.
A cooler property sector not only weighs on demand for copper as construction material, but also dampens consumption from the home appliances sector.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption.
Elsewhere, gold futures for June delivery dipped $2.80, or 0.23%, to trade at $1,200.30 a troy ounce, while silver futures for May delivery shed 0.6 cents, or 0.04% to trade at $16.00 an ounce.
The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.5% to trade at 97.71 early on Wednesday.
Meanwhile, concerns over the lack of an agreement on economic reforms for bailout funds between Greece and its creditors remained in focus.
The Greek government is no closer to reaching an agreement with its international creditors over economic reforms required to access remaining bailout funds.
Athens must pay €780 million due to the International Monetary Fund on May 12, fuelling fears that the country could default on its debt be forced out of the euro zone.