Investing.com - Copper futures traded near a three-week low on Monday, as ongoing jitters over a possible bond default in China's construction sector weighed.
On the Comex division of the New York Mercantile Exchange, copper for September delivery dipped 0.08%, or 0.3 cents, to trade at $3.182 a pound during European morning hours.
Prices held in a range between $3.174 and $3.197. Copper fell to $3.167 a pound on Friday, the lowest since June 30, before settling at $3.184, down 1.12%, or 3.6 cents.
Futures were likely to find support at $3.161, the low from June 30 and resistance at $3.219 a pound, the high from July 18.
Northern Shanxi-based construction firm Huatong Road & Bridge Group warned last week that it may default on a 400 million yuan bond set to mature on July 23, triggering concerns over the near-term demand outlook in China.
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 last year.
Elsewhere on the Comex, gold for August delivery inched up 0.44%, or $5.80, to trade at $1,315.20 a troy ounce, while silver for September delivery tacked on 0.63%, or 13.1 cents, to trade at $21.01 an ounce.
Investors remained cautious after the downing of a Malaysian airliner in eastern Ukraine last week and as ongoing fighting in Gaza continued to dominate market attention.