Investing.com - Copper futures edged lower on Wednesday, as sentiment was dampened after the World Bank cut its global growth forecast for this year.
On the Comex division of the New York Mercantile Exchange, copper for July delivery held in a range between $3.041 and $3.070 a pound. Prices last traded at $3.045 during European morning hours, down 0.25%, or 0.8 cents.
Copper tacked on 0.31%, or 0.9 cents, on Tuesday to settle at $3.053 a pound. Prices fell to a five-week low of $3.018 on Monday.
Futures were likely to find support at $3.018 a pound, the low from June 9 and resistance at $3.094 a pound, the high from June 6.
The World Bank lowered its global growth forecast to 2.8% from an earlier estimate of 3.2%, citing weaker than expected growth in the U.S., Russia and China.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
Prices of the red metal have been under heavy selling pressure in recent sessions as traders worried about the outcome of a Chinese investigation into commodities-fueled financing deals that could hurt demand for the industrial metal.
Concerns about fraud in commodities markets spread to a second Chinese port of Penglai earlier this week after authorities began conducting a probe into allegations of fraud in the port of Qingdao last week.
Copper is used as collateral by companies and investors in China, in an effort to work around strict lending standards enforced by Beijing.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for August delivery picked up 0.26%, or $3.30, to trade at $1,263.40 a troy ounce, while silver for July delivery advanced 0.3%, or 5.7 cents, to trade at $19.22 an ounce.