Investing.com - Copper prices held near the previous session's three-week low on Monday, as a broadly stronger U.S. dollar dampened the appeal of the industrial metal.
On the Comex division of the New York Mercantile Exchange, copper for July delivery shed 0.4 cents, or 0.15%, to trade at $2.807 a pound during European morning hours. Prices held in a range between $2.794 and $2.811.
On Friday, copper fell to $2.789, the lowest level since April 30, before settling at $2.811, down 3.7 cents, or 1.32%. Futures were likely to find support at $2.788, the low from April 30, and resistance at $2.855, the high from May 22.
Activity was likely to remain thin on Monday, as markets in the U.K., U.S. and Germany are all shut for public holidays.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% at 96.50 early Monday, the strongest level since April 28.
The greenback strengthened after Federal Reserve Chair Janet Yellen said on Friday that interest rates will be raised later in the year. After that, future rate hikes will be small and gradual over the next several years, Yellen added.
The dollar had also been boosted on Friday after stronger-than-expected U.S. inflation data supported the case for a rate hike later this year.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere, gold futures for August delivery dipped 70 cents, or 0.06%, to trade at $1,204.20 a troy ounce, while silver futures for July delivery declined 1.8 cents, or 0.11% to trade at $17.03 an ounce.
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.
Meanwhile, concerns over the prospects of a Greek default continued to dominate market sentiment ahead of a critical June 5 deadline for Athens to reach a deal with its creditors.
Greece is scrambling to reach an agreement with its international lenders over economic reforms they say must be implemented before the final €7.2 billion tranche of the country's €240 billion bailout is released.
The debt-strapped nation is due to make a €305 million payment to the International Monetary Fund on June 5, but will default if a deal is not reached by then.