Investing.com - Copper prices held near the lowest level in more than six years on Tuesday, as Chinese stock markets plunged again, adding to concerns over the health of the world's second largest economy.
Copper for September delivery on the Comex division of the New York Mercantile Exchange inched up 0.5 cents, or 0.22%, to trade at $2.264 a pound during morning hours in London.
A day earlier, copper futures tumbled to $2.209, a level not seen since July 2009, before recovering slightly to end at $2.259, down 4.4 cents, or 1.93%.
The Shanghai Composite tumbled nearly 8% on Tuesday, one day after suffering its biggest one-day drop since February 2007, as investors dumped shares amid disappointment that Beijing held back from implementing fresh measures to support stocks.
Chinese equities have lost nearly 30% over the past two weeks amid growing fears over China's slowing economy and worries that Beijing may allow the yuan to continue to depreciate.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere, gold futures for December delivery dipped $5.80, or 0.5%, to trade at $1,147.80 a troy ounce. Losses were limited as concerns over the health of the global economy fanned hopes that the Federal Reserve could delay raising interest rates till the very end of 2015.
Some traders believe the U.S. central bank could postpone raising interest rates until December, as officials are likely to remain concerned over weak global growth and inflation pressures due to China’s shock currency devaluation move and plunging oil prices.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.