Investing.com - Copper futures declined on Tuesday to re-approach the previous session’s two-week low, amid ongoing concerns that attempts by policymakers in Beijing to cool China’s property sector and rein in lending will reduce demand for the industrial metal.
A cooler property sector not only weighs on demand for copper as construction material, but also dampens consumption from the home appliances sector.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded in a range between $3.215 a pound and $3.253 a pound.
Copper prices last traded at $3.218 a pound during European morning hours, down 0.65%.
The May copper contract fell to $3.204 a pound on Monday, the lowest since February 11, before trimming losses to settle at $3.240 a pound, down 0.61%.
Futures were likely to find support at $3.204 a pound, the low from February 24 and resistance at $3.259 a pound, the high from February 24.
Data released Monday showed that average new home prices in China''s 70 major cities rose 9.6% in January from a year earlier, easing from the previous month''s 9.9% increase.
It was the first slowdown in the rate of price increases since November 2012.
Meanwhile, market players also looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy.
The U.S. is to release a closely-watched report on consumer confidence, as well as private sector data on house price inflation.
The U.S. is second behind China in global copper demand.
Elsewhere on the Comex, gold for April delivery shed 0.2% to trade at $1,335.20 a troy ounce, while silver for May delivery dropped 1.1% to trade at $21.85 a troy ounce.
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