Investing.com - Copper futures fell to a two-week low on Thursday, as jitters over a possible bond default in China''s construction sector weighed.
On the Comex division of the New York Mercantile Exchange, copper for September delivery hit a daily low of $3.205 a pound, the weakest level since July 2, before trimming losses to last trade at $3.212 during European morning hours, down 0.07%, or 0.2 cents.
Copper ended Wednesday’s session down 1.08%, or 3.5 cents, to settle at $3.214 a pound. Futures were likely to find support at $3.183, the low from July 2 and resistance at $3.256 a pound, the high from July 16.
Northern Shanxi-based construction firm Huatong Road & Bridge Group warned on Wednesday that it may default on a 400 million yuan bond set to mature on July 23, triggering concerns over the near-term demand outlook in China.
Concerns over domestic bond defaults stoked investor worries that financing deals, which have locked up vast quantities of copper could unravel.
A cooler property sector not only weighs on demand for copper as construction material, but also dampens consumption from the home appliances sector.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for August delivery inched up 0.32%, or $4.20, to trade at $1,304.00 a troy ounce, while silver for September delivery tacked on 0.36%, or 7.5 cents, to trade at $20.85 an ounce.
Gold and silver prices have been under heavy selling pressure in recent sessions amid speculation that the Federal Reserve could hike U.S. interest rates sooner than expected.
Fed Chair Janet Yellen said earlier in the week that the central bank could start raising interest rates sooner than expected if the U.S. labor market continues to improve more quickly than anticipated.
However, the Fed chair also said that if the recovery was disappointing monetary policy would remain accommodative.
The U.S. was to publish reports on initial jobless claims, housing starts, building permits, and the Philly Fed manufacturing index later in the day.
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