Investing.com - Copper prices fell to the lowest level since May 2009 on Monday, as the possibility of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, weighed.
Copper for December delivery on the Comex division of the New York Mercantile Exchange shed 3.7 cents, or 1.82%, to trade at $2.017 a pound during morning hours in London. It earlier fell to $2.001, a level not seen in more than six years. The March contract slumped 3.9 cents, or 1.92%.
Meanwhile, three-month copper on the London Metal Exchange hit an intraday low of $4444.75 a metric ton, the weakest level since June 2009, before recovering to $4,481.25, down 1.64%.
Prices of the red metal are down nearly 30% 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 nearly 45% of world consumption.
Elsewhere in metals trading, gold and silver struggled near five-and-a-half-year lows on Monday, as investors braced for a hike in interest rates by the Federal Reserve next month.
Gold futures are nearly 10% below highs hit in mid-October amid mounting expectations the Fed will raise rates for the first time in nearly a decade at its mid-December meeting.
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 climbed to the highest level since April against a basket of six other major currencies, weighing further on metal prices. Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
In the week ahead, market players will focus on a flurry of U.S. economic data due on Wednesday for further indications on the strength of the economy and the likelihood of a December rate hike.
U.S. markets will be closed Thursday for the Thanksgiving holiday and Friday will be a half day.
Courtesy : Investing.com
