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Copper futures slide to 2-week low on China demand concerns

Published 21/10/2015, 09:32
© Reuters.  Copper falls to 2-week low as China demand concerns weigh
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Investing.com - Copper futures fell to the lowest level in nearly two weeks on Wednesday, as persistent worries about future demand from top consumer China weighed.

Copper for December delivery on the Comex division of the New York Mercantile Exchange hit an intraday low of $2.337 a pound, the weakest level since September 8, before trading at $2.344 during morning hours in London, down 2.1 cents, or 0.9%. A day earlier, copper shed 0.2 cents, or 0.08%.

Copper prices have been under heavy selling pressure in recent weeks as fears of a China-led global economic slowdown spooked traders and rattled sentiment.

Chinese government data released earlier in the week showed third-quarter economic growth slowed to 6.9%, the first time since the global financial crisis that the country’s gross domestic product has grown less than 7%.

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 dipped $2.10, or 0.18%, to trade at $1,175.40 an ounce, as market players continue to speculate over the timing of a U.S. rate hike.

Investors have been trying to gauge when the Federal Reserve will raise interest rates for the first time in nearly a decade after recent economic reports offered a mixed picture of the U.S. economic growth.

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: next week and in December.

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