Investing.com - Copper prices resumed their decline towards their lowest level in more than six years on Wednesday, as investors looked past China's latest easing move amid ongoing concerns over the deteriorating outlook for the Asian nation's economy.
Copper for September delivery on the Comex division of the New York Mercantile Exchange dropped 3.3 cents, or 1.41%, to trade at $2.281 a pound during morning hours in London. Copper prices tumbled to $2.209 on Monday, a level not seen since July 2009.
The People's Bank of China cut interest rates by 25 basis points to 4.6% on Tuesday, as Beijing stepped up efforts to boost economic growth and halt a stock market rout. The central bank also cut the reserve requirement ratio for large lenders by 0.5% to 18.0%.
However, Chinese equities struggled on Wednesday, as worries about whether China’s central bank had done enough to spur its slowing economy remained on investors' minds.
The Shanghai Composite closed down 1.3%, after turning sharply lower in the final ten minutes of trade, reflecting investors' views that much more support was needed from the government and the central bank.
Chinese equities have lost nearly 30% over the past two weeks amid growing fears over China's slowing economy.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere, gold futures for December delivery dipped $1.40, or 0.12%, to trade at $1,136.90 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.