Investing.com - Copper prices extended heavy losses from the previous session on Tuesday, as concerns over Greece's debt crisis and mounting losses on Chinese stock markets dampened appetite for the red metal.
Copper for September delivery on the Comex division of the New York Mercantile Exchange hit an intraday low of $2.486 a pound, a level not seen since February 2, before trading at $2.496 during European morning hours, down 3.0 cents, or 1.18%.
Greek Prime Minister Alexis Tsipras was to present new proposals to euro zone finance ministers later in the day, ahead of a meeting of European leaders to discuss the aftermath of Sunday’s referendum in Greece.
Greek banks were set to remain closed on Tuesday after capital controls were extended until Wednesday, amid concerns that lenders are close to running out of cash.
The European Central Bank announced Monday that it would keep its emergency liquidity assistance to Greece unchanged at levels announced last Monday. The ECB also said it will adjust the haircuts on collateral accepted by the Bank of Greece as part of the ELA, adding to pressure on Athens.
A day earlier, copper plunged 9.3 cents, or 3.53%, to close at $2.538 after Greek voters overwhelmingly rejected conditions of a rescue package from creditors in a weekend referendum, adding to doubts over the country's future in the euro zone and deepened a standoff with its lenders.
Meanwhile, shares in China resumed their decline despite efforts by the government to calm the market. The Shanghai Composite tumbled nearly 3% in volatile trade on Tuesday. The index is down almost 32% over the past three weeks.
Policymakers in Beijing announced the suspension of initial public offerings over the weekend and corralled its leading brokerages to establish a RMB120 billion fund to support the country's battered stock market.
Elsewhere, gold futures for August delivery inched up 70 cents, or 0.06%, to trade at $1,167.30 a troy ounce, while silver futures for September delivery tacked on 2.3 cents, or 0.15% to trade at $15.65 an ounce.
Uncertainty over Greece has so far failed to spur increased investor demand for gold, often perceived as a safe-haven asset.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.26% to 96.68, boosted by weakness in the euro.
Investors were looking ahead to U.S. trade data later in the day amid concerns that the stronger dollar is acting as a drag on exports.