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Copper falls to 1-week low after China GDP data

Published 19/10/2015, 08:10
© Reuters.  Copper declines after China economy logs weakest growth since 2009
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Investing.com - Copper futures were under pressure on Monday, after data showed that China's economy grew at its slowest pace since the global financial crisis in the third quarter.

Copper for December delivery on the Comex division of the New York Mercantile Exchange hit an intraday low of $2.380 a pound, the weakest level since September 9, before trading at $2.392 during morning hours in London, down 1.1 cents, or 0.47%. On Friday, prices slumped 1.9 cents, or 0.8%.

Official data released earlier showed that China’s economy grew 6.9% in the third quarter, slightly better than forecasts of a 6.8% rise but down from growth of 7.0% in the previous three months.

A separate report showed that industrial production rose by an annualized rate of 5.7% in September, below expectations for a 6.0% increase and following a gain of 6.1% in the preceding month.

Data on fixed asset investment also missed forecasts, reinforcing views that Beijing will roll out further support measures soon for the world's second largest economy.

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

Elsewhere in metals trading, gold futures for December delivery slumped $11.10, or 0.94%, to trade at $1,172.50 an ounce.

Gold rallied to $1,191.70 last Thursday, the most since June 22, amid speculation the Federal Reserve would not raise rates until sometime next year, with weak economic reports feeding that view.

A delay in raising rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

The timing of a Fed rate hike has been a constant source of debate in the markets in recent months. The U.S. central bank has two more scheduled policy meetings before the end of the year, in late-October and mid-December.

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