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Copper declines as China slowdown concerns weigh

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Investing.com -

Investing.com - Copper prices edged lower on Wednesday, amid ongoing concerns over the health of China's economy.

On the Comex division of the New York Mercantile Exchange, copper for July delivery declined 0.47%, or 1.4 cents, to trade at $3.043 a pound during European morning hours.

Copper held in a range between $3.038 a pound and $3.062 a pound. Prices eased up 0.11%, or 0.3 cents, on Tuesday to settle at $3.057 a pound.

Futures were likely to find support at $3.013 a pound, the low from May 2 and resistance at $3.082 a pound, the high from May 5.

Data released earlier showed that China's HSBC Services Purchasing Managers Index ticked down to 51.4 in April from 51.9 in March, underlining concerns that an economic slowdown in the world's second-largest economy is deepening.

The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year.

Meanwhile, investors awaited testimony from Federal Reserve Chair Janet Yellen later in the day. Yellen was expected to reiterate that the central bank intends to keep rates on hold for longer, in spite of last month's stronger-than-forecast U.S. nonfarm payrolls report.

Elsewhere on the Comex, gold for June delivery rose 0.34%, or $4.40, to trade at $1,313.00 a troy ounce, while silver for July delivery added 0.37%, or 7.3 cents, to trade at $19.71 an ounce.

Market players continued to monitor events in Ukraine, as the conflict between the government and pro-Russian separatists continued to escalate, stoking fears that the crisis will develop and drag the U.S. deeper into the standoff.

The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month.

Gold, seen as a safe haven investment, usually benefits from geopolitical turmoil.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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