Copper falls to 3-month low with FOMC outcome, 'Grexit' in focus

Investing.com - Copper prices fell to the lowest level in three-months on Wednesday, as investors awaited the outcome of the Federal Reserve's policy meeting and amid growing concerns over Greece's debt woes.

On the Comex division of the New York Mercantile Exchange, copper for July delivery hit an intraday low of $2.606 a pound, a level not seen since March 19, before recovering to trade at $2.623 during European morning hours, up 0.7 cents, or 0.27%.

A day earlier, copper fell 3.1 cents, or 1.19%, to close at $2.615. Futures were likely to find support at $2.595, the low from March 19, and resistance at $2.681, the high from June 15.

Later in the day, the Fed will publish its rate statement, which outlines economic projection and the factors affecting the monetary policy decision. The central bank will also release its latest forecasts for economic growth and interest rates.

Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the statement, as investors look for any clear signal about a possible timeline for hiking interest rates.

Recent economic reports have indicated that the U.S. economy was regaining strength after contracting in the first quarter, fuelling speculation that the U.S. central bank could raise rates as soon as September.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.2% to 95.05 early on Wednesday, moving off Tuesday's highs of 95.50.

Meanwhile, investors continued to monitor developments surrounding talks between Greece and its international creditors, amid growing concerns that the country could default on its debt be forced out of the euro zone.

Europe wants Greece to make spending cuts worth €2 billion in order to secure a deal that will unlock additional funds before its bailout expires at the end of June and it must repay €1.6 billion to the IMF.

But comments by Prime Minister Alexis Tsipras on Tuesday in which he accused the county’s creditors of trying to "humiliate" Greece with more cuts indicated that Athens is sticking to a hard line in negotiations.

Failure to strike a deal would result in Greece defaulting on payments and exiting the euro zone.

Elsewhere, gold futures for August delivery dipped $2.20, or 0.19%, to trade at $1,178.70 a troy ounce, while silver futures for July delivery fell 2.7 cents, or 0.17% to trade at $15.93 an ounce.