Copper prices rise from 6-year lows but gains remain limited

Source : Investing.com - Copper prices inched up on Tuesday, but remained not far above the prior session's six-year low as expectations of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, weighed. Copper for March delivery on the Comex division of the New York Mercantile Exchange tacked on 1.0 cent, or 0.5%, to trade at $2.032 a pound during morning hours in London. A day earlier, prices fell to $2.001, a level not seen in more than six years. Meanwhile, three-month copper on the London Metal Exchange rose 0.87% to $4504.75 a metric ton. On Monday, prices hit $4508.50, the weakest level since June 2009. Prices of the red metal are down more than 12% so far this month as fears of a China-led global economic slowdown and a stronger greenback slammed commodities. Elsewhere in metals trading, gold and silver languished near five-and-a-half-year lows on Tuesday, as investors awaited the release of revised U.S. third quarter economic growth data later in the day for a fresh reading on the strength of the economy. Gold futures are down 6% so far in November, while silver dropped 9.5% amid mounting expectations the Federal Reserve will raise interest rates for the first time in nearly a decade at its mid-December meeting. Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise. The U.S. dollar hovered near eight-month highs against a basket of six other major currencies, weighing further on metal prices. Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains. The U.S. is to release preliminary figures on third quarter economic growth at 8:30AM Eastern Time Tuesday. The data is expected to show that the economy expanded 2.1% in the three months ended September 30, compared to last month's advance estimate of 1.5%. U.S. markets will be closed Thursday for the Thanksgiving holiday and Friday will be a half day.