Investing.com - Copper futures declined on Monday, as worries over China's slowing economy dampened demand for the red metal.
Copper for September delivery on the Comex division of the New York Mercantile Exchange shed 1.8 cents, or 0.75%, to trade at $2.329 a pound during morning hours in London.
The Shanghai Composite dropped 1.4% on Monday amid reports that Beijing will scale back its market intervention efforts, which resulted in two straight days of 5% rallies in Shanghai last week.
Prices of the red metal sank to a six-year low of $2.202 on August 24 as concerns over the health of China's economy and steep declines on Chinese stock markets dampened appetite for the red metal.
The turmoil in markets began when China unexpectedly devalued the yuan on August 11, sparking fears that the economy may be slowing at a faster than expected rate.
Market players looked ahead to a pair of manufacturing reports due out of China on Tuesday for further hints over the strength of the world's second largest economy.
The official China manufacturing purchasing managers' index was expected to fall to 49.7 in August from 50.0 in July.
Meanwhile, the final reading of the Caixin/Markit manufacturing purchasing managers’ index was forecast to inch up to 47.2 from a preliminary reading of 47.1, which was the lowest since July 2013.
A reading below 50.0 indicates industry contraction.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere, gold futures for December delivery dipped $1.10, or 0.1%, to trade at $1,132.90 a troy ounce, while silver for September delivery slumped 5.4 cents, or 0.37%, to $14.49.
Gold lost 2% last week amid expectations the Federal Reserve will start raising interest rates at its next policy meeting in September.
Comments by Federal Reserve Vice Chairman Stanley Fischer on Friday suggested that the door was still open for a rate hike at the Fed's next meeting due to take place September 16-17.
Fischer said that the case for a rate increase in September was "pretty strong", though it was still too soon to say what the central bank might do.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
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.