Investing.com - Copper prices fell to the lowest level since July 2009 on Monday, as appetite for riskier assets took a hit following the weekend attacks in Paris that left 132 dead.
Copper for December delivery on the Comex division of the New York Mercantile Exchange shed 2.0 cents, or 0.93%, to trade at $2.148 a pound during morning hours in London. It earlier fell to $2.143, a level not seen in more than six years.
Investors sought the safety of the U.S. dollar, while equities fell, as markets reopened following a series of suicide bombings and shootings in Paris on Friday night that left more than 130 people dead.
The attacks prompted France to launch air strikes in Syria against the Islamic State (ISIS), which claimed responsibility for the attacks.
Copper prices dropped 6.8 cents, or 3.17%, last week, as the possibility of higher interest rates in the U.S. and slower global economic growth, particularly in China, weighed.
Disappointing Chines data on trade activity, inflation and industrial production last week reinforced the view that the economy remains in the midst of a gradual slowdown which will require policymakers in Beijing to roll out more measures to boost growth in coming months.
Prices of the red metal are down 25% since May as fears of a China-led global economic slowdown spooked traders and rattled sentiment.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.
Elsewhere in metals trading, gold prices rallied more than $10 on Monday, as investors sought safety in the precious metal following Friday's deadly attacks in Paris.
Gains were limited as market players prepared for a hike in interest rates by the Federal Reserve next month.
Gold prices have lost nearly 9% since mid-October as investors recalibrated their expectations of U.S. monetary policy in response to hawkish signals from the Fed.
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.
The U.S. dollar held near seven-month highs against a basket of six other major currencies, making dollar-priced commodities more expensive to investors holding other currencies.