Investing.com - Copper prices edged lower on Wednesday, after data showed that activity in China's services sector grew at the slowest pace in 17 months in December, the latest indication that the world's second-largest economy may be losing steam.
The Caixin services purchasing managers' index fell to 50.2 last month from November's reading of 51.2, disappointing expectations for an uptick to 52.3.
The disappointing data reinforced the view that the economy remains in the midst of a gradual slowdown which will require Beijing to roll out more support in coming months.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.
Copper for March delivery on the Comex division of the New York Mercantile Exchange shed 1.1 cents, or 0.51%, to trade at $2.084 a pound as of 07:57 GMT, or 2:57AM ET.
On Tuesday, copper tacked on 1.6 cents, or 0.77%, as sentiment improved after China's central bank flooded its banking system with 130 billion yuan, or $19.95 billion, marking the largest cash injection since September.
Copper is down 2% so far this week as the release of weak Chinese manufacturing activity data and steep declines on China's stock market rattled sentiment.
Elsewhere in metals trading, gold prices inched higher to trade near a four-week peak, as investors reacted to news that North Korea tested a hydrogen bomb.
Investors also kept an eye on developments in the Middle East as tensions between Saudi Arabia and Iran remain high.
The yellow metal is up 2% so far this week as market players sought refuge amid instability in the Middle East and fresh concerns over global growth.