Investing.com - Copper prices declined for the sixth straight session on Tuesday to hit the lowest level since July 2009 after the latest inflation figures out of China added to concerns over the health of the world's second-biggest economy.
Copper for December delivery on the Comex division of the New York Mercantile Exchange declined 0.8 cents, or 0.37%, to trade at $2.222 a pound during morning hours in London. It earlier fell to $2.211, a level not seen in more than six years.
A day earlier, copper prices dipped 1.2 cents, or 0.54%, after China's trade figures disappointed analyst expectations by a wide margin in October.
Government data released earlier showed that consumer prices in China rose 1.3% last month, below expectations for 1.5% and down from 1.6% in September.
Chinese producer prices declined 5.9% in October, the 44th straight monthly decline and matching the worst reading since October 2009.
The soft data followed disappointing Chinese trade figures over the weekend. Exports fell 6.9% from a year earlier in October, down for a fourth month. Imports plunged 18.8%, leaving China with a record high trade surplus of $61.6 billion.
The disappointing reports reinforced the view that the economy remains in the midst of a gradual slowdown which will require policymakers in Beijing to roll out more measures to boost growth in coming months.
Market players now looked ahead to data on Chinese industrial production, retail sales and fixed asset investment on Wednesday for further hints on the strength of the world's second-largest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere in metals trading, gold prices languished near three-month lows, as investors continued to cut holdings of the precious metal amid expectations the Federal Reserve will raise interest rates at its next meeting in December.
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 held near seven-month highs against a basket of six other major currencies amid expectations for tighter monetary policy in the U.S. in the coming months.
Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
Investors looked ahead to key U.S. data later in the week for further indications on the strength of the economy and the likelihood of a near-term rate hike.
The U.S. is slated to release data on retail sales, producer prices and consumer sentiment on Friday.