Investing.com - Copper futures fell sharply on Tuesday, as concerns over the health of China’s economy intensified after data showed that China's services sector grew at its slowest pace in nearly nine years in July.
On the Comex division of the New York Mercantile Exchange, copper for September delivery dropped 0.93%, or 3.0 cents, to trade at $3.214 a pound during U.S. morning hours.
Prices held in a range between $3.211 and $3.249 a pound. Futures were likely to find support at $3.199, the low from August 4 and resistance at $3.262, the high from July 30.
Data released earlier showed that the HSBC/Markit China services purchasing managers' index fell to 50.0 in July from a 15-month high of 53.1 in June.
It was the lowest reading since November 2005, indicating a recovery in the broader economy remains fragile and may need further government stimulus.
China is the world's biggest buyer of copper, accounting for roughly 40% of the market.
Elsewhere on the Comex, gold for December delivery tacked on 0.11%, or $1.40, to trade at $1,290.30 a troy ounce, while silver for September delivery shed 0.37%, or 7.5 cents, to trade at $20.15 an ounce, the lowest since June 19.
Market players looked ahead to data on June U.S. factory orders and July’s ISM-non manufacturing PMI later in the session for further clues about the strength of the economy.
Data last week was mixed, with the second-quarter gross domestic product rebounding sharply even as jobs growth in July slowed down.
Gold and silver have been under pressure in recent weeks as an improving U.S. economy fuelled speculation that the Federal Reserve will raise interest rates sooner than expected.